Develop a prior year's reconstructed operating statement, assuming typically competent, professional management. Based on the reconstructed NOI and the current market value, determine the capitalization rate.2. Develop a seven-year forecast of NOI for the St. George Apartments, incorporating the following assumptions: a. Potential gross rent and miscellaneous other income will grow at 2.5% per annum over the forecast period.b. Vacancies in the market area will remain constant over the forecast period.c. Operating expenses other than management fees and property taxes will grow at 2.5% per annum over the forecast period.d. Management fees as a percent of effective gross income will remain constant over the forecast periode. Property taxes are expected to increase to $76,048 in the third year of the forecast and to $85,039 in the seventh year.3. Assuming that the capitalization rate will remain constant, develop an estimate of the property's market value at the end of the projected holding period.4. Suggest some reasons why the capitalization rate might not remain con-rate?stant. Why might it become larger or smaller that the currently prevailing ?