real estate

An investor is considering the purchase of a small office building. The NO/ is expected to be the following: Year 1,$202,000; Year 2 , $212,000; Year 3, \$222,000; Year 4,\$232,000; Year 5,$242,000. The property will be sold at the end of year 5 and the investor believes that the property value should have appreciated at a rate of 3 percent per year during the five-year period. The investor plans to pay all cash for the property and wants to earn a 10 percent return on investment (IRR) compounded annually. Required: a. What should be the present value of the property today? b. What should be the property value (REY) at the end of year 5 in order for the investor to earn the 10% IRR? c. Based on your answer in (b), if the buliding could be reproduced for $2,320,000 today, what would be the underlying value of the land? Complete this question by entering your answers in the tabs below. Based on your answer in (b), If the bullding could be reproduced for $2,320,000 today, what would be the underlying value of the land