Q2) Create a working Excel spread sheet where you can a) solve for todays market value of this hypothetical investment property, and where you are able to b) manually manipulate each assumption that is given (based on the expected future values of cash flows generated):

Assumptions:

• Lets assume that inflation is expected to rise at roughly 3% per year over the next ten years
• Lets also assume that we will be able to be able to sell this property in exactly 10 years from today for exactly $10 MM at that time (net of closing costs/transaction fees, etc.)
• Lets also assume this property generates net $30,000 annual cash flows from rental income (after all maintenance and property taxes) and this cash flow is expected to gradually rise by 2% per year over the next ten year period