Save An investor is considering the purchase of a small apartment The NOI is expected to be the following Year 1, 214,000 ; Year 2. $224.000 ; Year 3. $ 234.000 : Year 4.$244.000 : Year 5. $ 254.000 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 perioc 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 property value (REV) at the end of year 5 in order for the investor to earn the 10% IRR? b. What should be the present value of the property today? c. Based on your answer in (b) if the building could be reproduced for $2,440,000 today, what would be the underlying value of the land? a. What should be the property value (REV ) at the end of year 5 in order for the investor to earn the 10% IRR? .b. What should be the present value of the property today? 02 3 c. Based on your answer in (b) if the building could be reproduced for $2,440,000 today, what would be UV-43.- the underlying value of the land? SP