You are considering the purchase of a small office building. The NOI is expected to be the following: 1 2 3 200,000 210,000 220,000 4 230,000 5 240,000 6 250,000 NOI You set aside 8% of NOI every year for capital reserves. The property will be sold at the end of year 5, and you will pay 3% of the price in selling expenses. You believe that the property will have a terminal cap rate of 7%. You plan to pay all cash for the property. You want to earn a 10% IRR annually. 1. What property value are you projecting at the end of year 5? 2. What purchase price should you pay to earn your desired IRR? 3. If everything works out according to your projections, how much will the property value appreciate over these five years