(CHAPTER 10) An investor would like to buy an office building currently occupied by Pumpkin Pie Recipes Unlimited Co, LTD. The planned holding period is 4 years. It obtained Pumpkin Pie Recipes Unlimited Co. LTD's rental agreement, as well as a report on vacancies and various operating expenses for local buildings on a per square foot basis, which allowed the investor to estimate the net operating income (NO) for this office building for the next several years. In fact, what the investor figured out is that the NOI will equal $600.000 at the end of the 1st year, and will then increase by $50,000 each year for three more years, after which it will increase by 7% per year indefinitely Investor's required return is 14%. or you can do the math in Excel with corner referencing to cells with intermediate results: This will allow you to avoid ratinding errdes Otherwise increase docimal Bel the more the better. Say, 6 or even the Round your answers to whole dollars. Don't use the sign. NOE in year 1 is estimated at $600,000 (given). NOI in year 2 is estimated at 5 Noin year 3 is estimated at 5 Nol in year 4 is estimated at The reversion value at the end of the 4th year is estimated at $ The current value of the office building is estimated at if the estimated current value of the building is above is asking price, then the net present value (NPV) of this investment is Type "positive