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Consider a 2 0 0 , 0 0 0 SF office building complex, with NOI of $ 2 5 / SF / year with rents

Consider a 200,000 SF office building complex, with NOI of $25/SF/year with rents and operating expenses paid in arrears (at the end of the year) annually, and no capital expenditures.
The rent will increase by 3% per year. The discount rate is 10%/year.
a. What is the value of this office building, assuming that the building is sold at the end of
year 10 and the cap rate at that time is expected to be 10%? What is the cap rate at time 0?
b. What is the value of this office building, assuming that the building will be held and
rented indefinitely (perpetually)? What is the implied cap rate at time 0?
c. What is the value if the rents are paid in advance (at the beginning of the year) and the
building is rented perpetually?

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