FREE$-$RESPONSE QUESTIONS. Answer the questions exactly as directed. Note: if your

answer is a decimal with magnitude $($absolute value$)$ less than $1,$ be sure to include a $"0"$ in the

ones place. Further, any $"5"$ should be rounded up$.$ If the question requires you to express your

answer with one decimal place, and your answer is $0\mathrm{.}15,$ you should enter $0\mathrm{.}2$ in Canvas.

$25.$ You want to estimate the value of a property at time $t=0(V_0)$ using the income

approach to valuation. Consider a property with a $2-$year useful life, a cashflow generated by the

property of $$6,000$ per year, and a required rate of return $($opportunity cost$,$ discount rate$)$ of $5$

percent. The payout $($cash flow$)$ comes at the end of the year. What is $V_0?$ In Canvas, enter a

whole number with no $$,$ commas, or decimal places. Round your answer as necessary. As an

example, if your answer were $$1,234\mathrm{.}56,$ you would enter $1235).$

$26.$ You wish to estimate the value $($V$)$ of an existing building using the cost approach.

Suppose the cost of constructing a new, identical building is $$350,000.$ Suppose further that, due

to depreciation, you apply an adjustment factor of $0\mathrm{.}2.$ What is your estimate of V$?$ As in the

previous question, enter a whole number with no $$,$ commas, or decimal places, rounding as

necessary.