I would like you in groups to take the next step in our discussion by completing a mini$-$valuation of the leased fee estate in one of the lots in Hawaii based on the following

assumptions:

$1)$ the annual land rent under the lease, or cash flow is $$15,000$ per year escalating at $3\%$ per year for the remaining $20$ years on the land lease

$2)$he current market value of the home lot is $$150,000$ and is assumed to appreciate $($grow$)$ annually at $3\%$ per year for the remaining $20$ years.

$3)$ Estimate the net present values of the cash flow and reversion at discount rates of $8$ and $10\%.$

Each group should turn in an excel file showing the calculations and formulas.