QUESTION FOUR An investor is considering the purchase of an office property. He has done an extensive market analysis and has estimated that based on current market supply/demand relationship, rents, and his estimate of operating expenses, annual NOI will be as follows: No. 1 1,000.000 1,000,00 1,000,000 1,200,000 1250,000 1,300,000 1,339,000 Year 7 It is expected that beginning in year 7 and every year thereafter, NO1 will tend to reflect a stable, balanced market and should grow at 3% per year indefinitely. The investor requires a 12% return on an investment of this kind. Required: Assuming that the investment is expected to be owned for seven years and then sold. what would be the value for this property today? [25 marks]