QUESTION 2 You are looking at purchasing a parking lot near a well known convention center and arena. Due to city zoning, the property it restricted to be a parking lot indefinitely into the future (assume forever). Annual net operation cash flows (NOCFs) for the property for the year just finished were $200,000. The city allows you to increase prices by 2% annually which you plan to do every year and which will grow your NOCF's by 2% annually. Use the Gordon Growth model to estimate the value you are willing to pay for the property if your required rate of return is 14%? Value = Do (1+0) k-g Di 11 kog