Given the following owner's income and expense estimates for an apartment property, use Excel to formulate a reconstructed operating statement and answer the below two questions. The building consists of 25 units that could rent for $1250 ner month each. 1. Estimating vacancy and collection losses at 4 percent of potential gross income, reconstruct the operating statement to obtain an estimate of Net Operating Income (NOI). Assume an above-line treatment of Capital Expenditure (CAPX). Remember, there may be items in the owner's statement that should not be included in the reconstructed operating statement. 2. Using the NOI and a Capitalization rate (Ro) of 9.25 percent, calculate the property's indicated market value. 3. Assuming an annual market rent increase of 6.25%, operating expenses increase of 5.25% and capital expenditures increase of $.75%, a terminal capitalization rate of 3/4 of a point higher than going in capitalization rate, a holding period of 9 years, and an investment opportunity cost of 12%, selling expenses of 6.25% of sale price, calculate the value of the property using the Discounted Cash Flow (DCF) model