Information:

GPI = $2,100,000 with a growth rate per year of 1.3%

V&C = 6.5% of GPI and Operating Expenses = 12% of GPI

Loan terms are: 3.6%, 25 years (monthly compounding), LTV=90%

Appreciation Rate = 1.3% per year and the holding-period is 2 years

IRR to the developer is 25%

(1) Calculate the WACC:

(2) Calculate the Present Value of NOI: N=2

(3) Calculate the Present Value of the Reversion n=2

(4) Appraised Value