please use excel formulas and show the forumulas. if correct me and my friends will like! please do A, B,C, and D!

1. Zenith Investment Company is considering the purchase of an office property. It has done an extensive market analysis and has estimated that based on current market supply demand relationships, rents, and its estimate of operating expenses, annual NOI will be as follows: Year NOI $1,000,000 2 2 1.000.000 3 1.000.000 4 1.200,000 5 1.250.000 1.300,000 7 1.339,000 1.379,170 A market that is currently over supplied is expected to result in cash flows remaining flat for the next three years at 1.000.000 During years 4.5 and 6. market rents are expected to be higher. It is further expected that beginning in your 7 and every year thereafter, Nor will tend to reflect a stable, balanced market and should grow at 3 percent per year indefinitely, Zenith believes that investors should cam a 12 percent return (7) on an investment of this kind 6. Assuming that the investment is expected to produce NO in years 1-B and is expected to be owned for seven years and then cold, what would be the value for this property today? - 1.200,000 5 1.250,000 0 1.300.000 7 1,339.000 1.379.170 8 A market that is currently versupplied is expected to result in cash Nows remaining flot for the next three years at $1,000,000 During years 4, 5, and market rents are expected to be higher. It is further expected that beginning in year 7 and every year thereafter. No will tend to reflect a stable, balanced market and should grow or 3 percent per year indefinitely, Zenith believes that investors should earn a 12 percent return (n) on an investment of this kind a. Assuming that the investment is expected to produce Nol in years 1-8 and is expected to be owned for seven years and then sold, what would be the value for this property today! Hor: Begin by estimating the reversion value at the end of year 7 Recall that the expected IRP 12% and the growth rate () in your and beyond is estimated to retain level at b. What would the terminal capitalization rate (Ry) beat the end of your What would the going in capitalization rate (R) be based on year I NOT d. What explains the difference between the going in and terminal cap rates