E3.6. Applying Present Value Calculations to Value a Building (Easy) In the year 2008, a real estate analyst forecasts that a rental apartinent building will gener- ate $5.3 million each year in rents over the five years 2009-2013. Cash expenses are expected to be $4.2 million a year. At the end of five years, the building is expected to sell for $12 million. Real estate investors expect a 12 percent return on their investments. Apply present value discounting techniques to value the building Applications