Athena Investment Company is considering the purchase of an office property. After a careful review of the market and the leases that

are in place, Athena believes that next year's cash flow will be $$100,000.$ It also believes that the cash flow will rise in the amount of

$$8,800$ each year for the foreseeable future. It plans to own the property for at least $10$ years. Based on a review of sales of properties

that are now $10$ years older than the subject property, Athena has determined that cap rates are in a range of $0\mathrm{.}10.$ Athena believes that

it should earn an IRR $($required return$)$ of at least $11$ percent.

Required:

a$.$ What is the estimated value of this office property $($assume a $0\mathrm{.}10$ terminal cap rate$)?$

b$.$ What is the current, or going$-$in$,$ cap rate for this property?

What is the estimated value of this office property $($assume a $0\mathrm{.}10$ terminal cap rate$)?$

Note: Do not round intermediate calculations. Round your final answer to the nearest dollar amount.