Consider a property with expected future net cash flows of $15,000 per year for the next 5 years (starting one year from now). After that, the operating cash flow should step up to $20,000, for the following 5 years. If you expect to sell the property 10 years from now for a price 10 times the net cash flow at that time, what is the value of the property if the required return is 14%? In the previous question, suppose the seller of the building wants $150,000. (a) Should you do the deal? Why or why not? (b) What is the IRR if you pay $150,000? How does this compare to the required return of 14%? (c) What is the IRR if you could get the seller to accept $14 for the property? What is the NPV at that price? Suppose that the required return on the property in the problem 1 is 11% instead of 14%. What would the value of the property be? By what percentage has this value changed as a result of this 300 basis point change in the required return? Go back to the property in the problem 1 with the 14% required return. What is the value of the property if the cash flow increases 7.5% in year 6, to $21,500, instead of the original? By what percentage has this changed the property value? Consider a property with expected future net cash flows of $15,000 per year for the next 5 years (starting one year from now). After that, the operating cash flow should step up to $20,000, for the following 5 years. If you expect to sell the property 10 years from now for a price 10 times the net cash flow at that time, what is the value of the property if the required return is 14%? In the previous question, suppose the seller of the building wants $150,000. (a) Should you do the deal? Why or why not? (b) What is the IRR if you pay $150,000? How does this compare to the required return of 14%? (c) What is the IRR if you could get the seller to accept $14 for the property? What is the NPV at that price? Suppose that the required return on the property in the problem 1 is 11% instead of 14%. What would the value of the property be? By what percentage has this value changed as a result of this 300 basis point change in the required return? Go back to the property in the problem 1 with the 14% required return. What is the value of the property if the cash flow increases 7.5% in year 6, to $21,500, instead of the original? By what percentage has this changed the property value