Q2: Answer shortly the following two questions: ASP company is considering the purchase of an wholesale property. After a review of the market and the leases that are in place. ASP believes that first year's cash flow will be $100,000. It also believes that the cash flow will rise in the amount of $5,400 each year for the foreseeable future. It plans to own the property for at least 10 years. Based on a review of sales of properties that are now 10 years older than the subject property, ASP has determined that cap rates are in a range of 10%. ASP believes that it should earn a required return of at least 11 percent. Required: What is the estimated value of this property (assume a 0.10 teminal cap rate)