MSULUI If you desire part You have estimated the cash flows fr PGI 2 Tacire partial credit on these problems, show your work. d the cash flows for a potential acquisition: 1 2 250,000 242,500 254,625 264,810 272,754 Vacancy -17,500 -16,975 -17,824 -18,537 -19,093 232,500 225,525 236,801 246,273 253,661 -104,625 -101,486 -106,561 -110,823 -114,148 127,875 124,039 130,241 135,450 139,514 -92,663 -92,663 -92,663 -92,663 -92,663 35,212 31,376 37,578 42,787 4 EGI Expenses NOI Debt Service BTCF Additional information: 46,851 - The investor believes the overall market required rate of return is 12% and he will make his purchase offer based on a value determined by DCF. He anticipates holding the investment for five years. Over this period, he anticipates property values will increase 3% per year. Projected (future) sales costs are 6.0% (% of FSP). Questions: a (12 points) What is the estimated overall value of the property based on DCF analysis (please do not estimate a terminal cap rate)? Answer: 358.894 1.6