Question 7 (1 point) How much are you willing to pay for Tower Square, if you expect to hold the property for 3 years and demand an 8% return? Use the following assumptions in your discounted cash flow approach to this problem. (Hint: You already did Year 1 in number 7) Tower Square is a 3-story mixed used facility Stores on the 1st floor combined pay monthly rent of $12.000 The apartments (2nd & 3rd story combined) pay rent of $18,000/month Vacancy & Collection losses are 5% of PGI per year Tower Square has a cell tower on its roof generating income of $25,000/year Operating Expenses are $75,000/year Replacement Reserve is $12,500/year Rents are expected to grow at 4% per year Vacancy & Collection losses are expected to remain at 5% of PGI per year The income from the cell tower is expected to remain constant Operating Expenses are expected to grow at 3% per year Replacement Reserve is constant Terminal cap rate is 6.75% 4,670,355 3,947,883 4,456,104 3.715,869 Question 7 (1 point) How much are you willing to pay for Tower Square, if you expect to hold the property for 3 years and demand an 8% return? Use the following assumptions in your discounted cash flow approach to this problem. (Hint: You already did Year 1 in number 7) Tower Square is a 3-story mixed used facility Stores on the 1st floor combined pay monthly rent of $12.000 The apartments (2nd & 3rd story combined) pay rent of $18,000/month Vacancy & Collection losses are 5% of PGI per year Tower Square has a cell tower on its roof generating income of $25,000/year Operating Expenses are $75,000/year Replacement Reserve is $12,500/year Rents are expected to grow at 4% per year Vacancy & Collection losses are expected to remain at 5% of PGI per year The income from the cell tower is expected to remain constant Operating Expenses are expected to grow at 3% per year Replacement Reserve is constant Terminal cap rate is 6.75% 4,670,355 3,947,883 4,456,104 3.715,869