The first property is the Empty Arms hotel. Next year's NOI and cash flow is expected to be $1,100,000 and BIC's forecast of market supply and demand and vacancy levels indicates that these factors will continue to be in balance. As a result, NOI should increase by 1.5 percent each year and BIC believes they should earn 10.5% total return on the investment. A) If Empty Arms is like other recently sold properties, what is the cap rate in the local market? (5 points) B) What is the estimated value of the property? (5 points) C) Should they purchase this investment if the negotiated asking price is $11.5M and why? Answer the question and all others in the form of: Yes/No, the NPV = +/- Sxxxxxx (5 points for each answer)