You are considering the purchase of a small office building. The NOI is expected to be the following:

Year 1 = $200,000

Year 2 = $210,000

Year 3 = $220,000

Year 4 = $230,000

Year 5 = $240,000

-The property will be sold at the end of year 5.

-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% return on investment (IRR) compounded annually.

Question #1: What property value are you projecting at the end of year 5?

Question #2: What should you pay to earn your desired IRR?

(If you can please show how to set-up & solve in excel, that would be extremely helpful. Thank you.)