building that has been described using the discounted cash flow approach to valuation. Assume that you will sell the office building at the end of the 5th y ownership. (Use the information provided below to answer questions 6 to 14 Type of Property: Leasable Space: Average Rent: Expected Rent Growth: Office Building 50,000 square feet $25 per square foot per year 2.5% per year Vacancy and Collection Losses: 15% of potential gross income $1.50 per square foot per year Other Income: I Expected Growth in Other Income: 3% per year Operating Expenses: Capital Expenditures: Going-In Cap Rate: Going-Out Cap Rate: Selling Expenses: Discount Rate: 45% of effective gross income 5% of effective gross income 7% 7.125% 7.5% of future selling price 8%