5. The projected cash flows (including reversion) appear in the Excel file HW 3 Data.xlsx for two properties (Property A and Property B). a. If both properties sell at a cap rate (initial cash yield) of 10 percent, what is the expected total return on a 10-year investment in each property? b. If the 10 percent cap rate represents a fair market value for each property, then which property is the more risky investment? Give reasons for your answer. c. What is the annual growth rate in operating cash flows for each building during the first nine years? d. How is the annual growth rate related to the cap rate and the investor's expected total return (IRR) in each property? e. In your opinion, which property provides the better investment opportunity and why? Boston San Francisco Return YYQ Return 0.0024 2003.1 2003.2 0.0098 0.0082 2003.3 0.0156 2003.4 2004.1 0.0141 0.0050 0.0078 0.0296 0.0429 0.0248 0.0421 0.0309 0.0439 2004.2 2004.3 0.0325 0.0181 0.0427 0.0655 0.0301 0.0361 0.0520 0.0487 2004.4 2005.1 2005.2 2005.3 0.0393 0.0433 0.0447 2005.4 5. The projected cash flows (including reversion) appear in the Excel file HW 3 Data.xlsx for two properties (Property A and Property B). a. If both properties sell at a cap rate (initial cash yield) of 10 percent, what is the expected total return on a 10-year investment in each property? b. If the 10 percent cap rate represents a fair market value for each property, then which property is the more risky investment? Give reasons for your answer. c. What is the annual growth rate in operating cash flows for each building during the first nine years? d. How is the annual growth rate related to the cap rate and the investor's expected total return (IRR) in each property? e. In your opinion, which property provides the better investment opportunity and why? Boston San Francisco Return YYQ Return 0.0024 2003.1 2003.2 0.0098 0.0082 2003.3 0.0156 2003.4 2004.1 0.0141 0.0050 0.0078 0.0296 0.0429 0.0248 0.0421 0.0309 0.0439 2004.2 2004.3 0.0325 0.0181 0.0427 0.0655 0.0301 0.0361 0.0520 0.0487 2004.4 2005.1 2005.2 2005.3 0.0393 0.0433 0.0447 2005.4