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Problem 2. (2 points) The table below shows two, 10-year cash flow projections (in $ millions, including reversion) for the same property. The upper row

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Problem 2. (2 points) The table below shows two, 10-year cash flow projections (in $ millions, including reversion) for the same property. The upper row is the projection that is presented by the broker trying to sell the building, the bottom row antheristic expectations developed by you. Assume that the current mar cherty is $10 million. What is the most likely amount of "disappointment the expost annual rate of total return (e.g. IRR) earned by an investor who buys this property believing the broker's cash flow projection? 0.00% 1.00% 3.27% 26.68% Problem 2. (2 points) The table below shows two, 10-year cash flow projections (in $ millions, including reversion) for the same property. The uppe row is the projection that is presented by the broker trying to sell the building the bottom row are the realistic expectations developed by you. Assume that the current market value for the property is $10 million. What is the most like amount of "disappointment" in the ex post annual rate of total return (e.g. IRR earned by an investor who buys this property believing the broker's cash flow projection? 0.00%1.00% 3.27% 26.68%

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