Could I please get step-by-step directions for the following assignment.

I'm falling very behind in this class.

Real Estate Finance and Investments Fall 2018 Homework: Valuation Due date: Sep 19 Question 1 We just signed a lease contract in a 200,000 SF ofce building complex for $25/SF/year with rents paid in arrears (at the end of the year) annually. The rent will increase by 3% per year. The discount rate is 10%/ year. a. What is the value of this ofce 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 implied cap rate at time 0? b. What is the value of this oice building, assuming that the building is sold at the end of year 10 and the cap rate at that time is expected to be the same as today? What is the implied cap rate at time 0 and 10? c. What is the value of this ofce building, assuming that the building will be held and rented indenitely (perpetually)? What is the implied cap rate at time 0? d. What is the value if the rents are paid in advance (at the beginning of the year) and the building is rented perpetually? Question 2 An acre (43,560 SF) of land in the CBD is being used as an open parking lot. The land currently brings $28 / SF [year rent, paid in arrears, and the rent is expected to increase by 2% annually. The discount rate for the parking lot rents is 8%. An investment project that is being considered is building a 100,000 SF ofce building on the land. The construction will cost $2,000,000 and the building will have a 30 year productive life after it is built (after 30 years, it is assumed that the building can be demolished and the land can be converted to a parking lot without additional cost). The construction will take one yearl. The resulting ofce space is expected to be rented for net $22/ SF/ year (in arrears) starting next year, and the rent is expected to increase by 1% annually. The required rate of return on o'ice buildings is 11%. Is this a good investment project? Question 3 Consider a 100,000 sqf ofce building with the following cash ows: The gross rent in year 1 is $30/ sqf/ year and the rents are expected to grow at 2% per year. The operating expenses in the rst year are $5/sqf/year and are expected to increase at 3% per year. All cash ows are in arrears. The discount rate for the property is 9%. a. What is the value of the building if the building will be held and rented indenitely? What is the implied cap rate at time 0? b. What is the value of the building if the building is sold at the end of 10 years at a 8% cap rate? What is the implied cap rate at time 0? 1Hint: No rents will come from the office building during the construction period