7 (36 points). Table 1 provides information for a property. The going-in cap rate for the property is 9.15% and its cost of capital is 14.30%. At the end of the holding period, which is 3 years, estimated selling expenses as a share of the selling price would be 10.00%. Show the formulas you use to compute your answers, as it will make it easier to assess any partial credit.

Table 1

Item	Year 1	Year 2	Year 3	Year 4	Year 5
PGI	1,000,000	1,300,000	1,600,000	1,900,000	2,200,000
EGI	700,000	900,000	1,100,000	1,300,000	1,500,000
NOI	550,000	650,000	750,000	850,000	950,000
Terminal cap rate if property is sold at end of year x	11.11%	11.32%	11.53%	11.74%	11.95%

a. What is the current estimated value of the building based on its cap rate? Round your answer to the nearest dollar and write it in the box.

b. What is the estimated net sales price (NSP) that would be used to compute DCF? Round your answer to the nearest dollar and write it in the box.

c. What is the current estimated value of the building based on DCF? Round your answer to the nearest dollar and write it in the box.