First$-$year NOI for a long$-$term net lease is expected to be

$$60,000.$ Rent is escalating at a rate of $4$ percent per year, but

there is a two$-$year period between adjustments. Thus, the income

for years $1$ and $2$ will be $$60,000,$ increasing to $$60,000(1+\mathrm{.}04)^2=$

$$64,896$ in years $3$ and $4,$ and so on$.$ The discount rate is $11$

percent. Assuming beginning$-$of$-$year payments, estimate the value of

the leased fee.$$