return ( r ) on an investment of this kind. final answer to 2 decimals)

Eva Investment Company is considering the purchase of an office property. It has done an extensive market analysis and has estimated that based on current market supply and demand relationships: rents: and its estimate of operating expenses: annual NOI be as follows: EOY 2 3 4 NOI It is funher expected that beginnmg in year and every year thereafter: NOI will tend to reflect a stable: balanced market and should grow at 3% per year indefinitely. Eva believes that investors should earn a 12% return (r) on an investment of this kind. Assuming that the investment is expected to produce NOI in years 1-5 and is expected to be ovmed for 4 years and then sold: vvhat is the "going-in" cap rate? (compute your answer using 4 decimals and round your final answer to 2 decimals)