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 0.15, you should enter 0.2 in Canvas. 25. [4] You want to estimate the value of a property at time t = 0 (Vo) 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 Vo? In Canvas, enter a whole number with no $, commas, or decimal places. Round your answer as necessary. As an example, if your answer were $1,234.56, you would enter 1235). 26. [3] 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 0.2. What is your estimate of V? As in the previous question, enter a whole number with no $, commas, or decimal places, rounding as necessary.