Use the information provided below to estimate the market value of the office building that has been described.

Please show all work, I especially need to know how to do part B, I'm not sure how to calculate the NOI for years 2-5

Use the information provided below to estimate the market value of the office building that has been described. Type of Property: Office Building Leasable Space: 100,000 square feet Average Rent: $20.00 per square foot per year Expected Rent Growth: 4.50% per year Vacancy and Collection Losses: 15.00% of potential gross income Other Income: $1.50 per square foot per year Expected Growth in Other Income: 3.00% per year Operating Expenses: 27.50% of effective gross income Capital Expenditures: 2.50% of effective gross income Going-In Cap Rate: 5.50% Going-Out Cap Rate: 6.25% Selling Expenses: 4.00% of future selling price Discount Rate: 6.75% Please attach a table to this page clearly showing all your computations similar to the power point slides on Blackboard (Handwritten or a printout of an MS excel spreadsheet are acceptable). a. What is the market value of this property according to the direct capitalization approach? i. Estimate the NOI for year 1. ii. Use the appropriate cap rate. b. What is the market value of this property according to the discounted cash flow approach? Assume that you are going to sell the property at the end of the 5th year of ownership. i. Estimate the NOI for the holding period (each year individually). ii. Estimate the terminal value. iii. Use the appropriate discount rate to arrive at the NPV. Use the information provided below to estimate the market value of the office building that has been described. Type of Property: Office Building Leasable Space: 100,000 square feet Average Rent: $20.00 per square foot per year Expected Rent Growth: 4.50% per year Vacancy and Collection Losses: 15.00% of potential gross income Other Income: $1.50 per square foot per year Expected Growth in Other Income: 3.00% per year Operating Expenses: 27.50% of effective gross income Capital Expenditures: 2.50% of effective gross income Going-In Cap Rate: 5.50% Going-Out Cap Rate: 6.25% Selling Expenses: 4.00% of future selling price Discount Rate: 6.75% Please attach a table to this page clearly showing all your computations similar to the power point slides on Blackboard (Handwritten or a printout of an MS excel spreadsheet are acceptable). a. What is the market value of this property according to the direct capitalization approach? i. Estimate the NOI for year 1. ii. Use the appropriate cap rate. b. What is the market value of this property according to the discounted cash flow approach? Assume that you are going to sell the property at the end of the 5th year of ownership. i. Estimate the NOI for the holding period (each year individually). ii. Estimate the terminal value. iii. Use the appropriate discount rate to arrive at the NPV