Consider a property with the following property level cash flows:

	NOI	Cash Flow
Y1	$100,000	$88,000
Y2	$102,000	$90,000
Y3	$104,040	$92,040
Y4	$106,121	$94,121
Y5	$108,243	$96,243

1. Assuming a sale at the end of Y3, the residual cap rate will be applied to what value?

2. Assuming an initial purchase price of $2.0M, what is the Y2 NOI return, the Year 1 COC return, and the 5 year average NOI return?

Please shows work