PLEASE SHOW ALL STEPS WITH EXCEL! I NEED TO KNOW HOW TO DO IT!

1. Suppose you are considering the acquisition of an income producing property. The building is currently leased for the next 4 years with annual (year-end) cashflows of $1,500,000. At the end of the current lease, you expect rents to increase to $1,800,000 (annually) for the foreseeable future. You anticipate selling the property ten years from today, at an expected multiple of 10.0 times the prevailing market rent. Market rates (OCC) are currently 5%, but given the uncertainty surrounding future rental rates a 3% risk premium must be added to interlease rates. What is the value of this property (to you) today? 1. Suppose you are considering the acquisition of an income producing property. The building is currently leased for the next 4 years with annual (year-end) cashflows of $1,500,000. At the end of the current lease, you expect rents to increase to $1,800,000 (annually) for the foreseeable future. You anticipate selling the property ten years from today, at an expected multiple of 10.0 times the prevailing market rent. Market rates (OCC) are currently 5%, but given the uncertainty surrounding future rental rates a 3% risk premium must be added to interlease rates. What is the value of this property (to you) today