For the following office property, an investor expects the annual NOI for the property will be $1,000,000 and remain flat for the next 3 years. Subsequently, the cash flows will be as below. It is further expected that beginning in year 7 an every year thereafter, NOI will reflect at stable market and grow at 3\% per year indefinitely. The investor believes that investors should earn 12% total return on this type of investment. 34. What cap rate should be found in the market for similar properties? a. 3% b. 5% c. 9% d. 12% 35. Assuming the investment will be owned for 7 years and then sold, what is the value of the property today? a. 9,468,170 b. 12,069,903 c. 15,324,111 d. 16,663,111 36 . Should they buy if the final negotiated list price is $12M ? a. No, the NPV is 2,531,830 b. No, the price is too high C. Yes, the selling price is $15,324,111