(a) Use Year 1 NOI (b) (r-g) (c) Refer to the highest and best use analysis...

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(a) Use Year 1 NOI (b) (r-g) (c) Refer to the highest and best use analysis in table below. (a+c = d) Implied Property Construction Cost of Implied Land (e) (d) -(e) R Value (PV) Building Value(Residual) Office Retail $ 522,000 0.13-0.03 0.10 $ 5,220,000 $ 4,000,000 1,220,000 $ 622,000 0.12-0.04 0.08 7,775,000 $ 6,750,000 1,025,000 Apartment $427,000 0.12-0.03 0.09 Warehouse $ 422,000 0.10-0.02 0.08 4,744,444 5,275,000 $ 3,000,000 1,744,444 $ 4,000,000 1,275,000 Required: Suppose that the warehouse Income would grow at 3 percent per year instead of 2 percent. a. Does this change the highest and best use of the site? Yes No b. What is the new Implied land value? (Do not round Intermediate calculations. Round your final answer to the nearest dollar amount.) New implied land value (a) Use Year 1 NOI (b) (r-g) (c) Refer to the highest and best use analysis in table below. (a+c = d) Implied Property Construction Cost of Implied Land (e) (d) -(e) R Value (PV) Building Value(Residual) Office Retail $ 522,000 0.13-0.03 0.10 $ 5,220,000 $ 4,000,000 1,220,000 $ 622,000 0.12-0.04 0.08 7,775,000 $ 6,750,000 1,025,000 Apartment $427,000 0.12-0.03 0.09 Warehouse $ 422,000 0.10-0.02 0.08 4,744,444 5,275,000 $ 3,000,000 1,744,444 $ 4,000,000 1,275,000 Required: Suppose that the warehouse Income would grow at 3 percent per year instead of 2 percent. a. Does this change the highest and best use of the site? Yes No b. What is the new Implied land value? (Do not round Intermediate calculations. Round your final answer to the nearest dollar amount.) New implied land value