Zenith Investment Company is considering the purchase of an office property. It has done an extensive market analysis and has estimated that based on current market supply$/$demand relationships, rents, and its estimate of operating expenses, annual NOI will be as follows:

Y$1$ $$1\mathrm{.}000\mathrm{.}000$

Y$21,000,000$

Y$31000\mathrm{.}000$

Y$41,200,000$

Y$51,250,000$

Y$61,300,000$

Y$71,339,000$

Y$81,379,170$

The NOI is expected to grow at $3$ percent per year beginning year $7$ and every year thereafter. And the investor require a $11$ percent return on the investment.

a$.$ Assuming that Zenith is expected to sell the property at the end of year $7,$ what would be the terminal cap rate? What would be the reversion value?

b$.$ What would be the value for this property today?

c$.$ What would the going$-$in cap rate be based on the value today and the year $1$ NOI?