estate income property in Smackover Arkansas. After a thorough analysis of market rent supply of new properties, demographics and other arrived the following estimates: Small Property Investment LLC has engaged Cole Consultant to evaluate a real economic factors, Cole Consultants have $170,940 for the next year Total Rental Income 10% Vacancy rate and collection losses 35% of Effective Gross Income 1,350,000 8% Operating Expenses & Improvement Asking Price of the Property Projected Market Capitalization Rate for next year Rental income is anticipated to increase at the rate of 5% for the following three years and will increase at the rate of 3% for the long time after that. Vacancy and operating expenses relation to the rental income is expected to remain constant over the life on the investment. Investor plan to sell the property at the end of four years. Investor required rate of return on unlevered property is 14%. Effective Gross Revenue Multiplier for similar properties of 8.5 times. Based on the above information, please answer the following. Be sure to show all your work. No credit will be provided for not showing your work. a) Using the Gross Revenue Multiplier approach, what is the estimated value of the property? b) Based on the going capitalization rate, compute the value of the property using direct capitalization rate. Assuming the investor-required rate of return as provided and that the investor sells the property at the end of four years at estimated reversion value, what is the present value of unlevered cash flow? c) d) Which is greater Cap Rate or Required Rate? Why