Table 1 provides information regarding a building that is being appraised. The holding period for the building is 3 years.

Table 1

Item	Note
Required return for the subject building	12.00%
Potential gross income next year	$2,500,000
Increase in potential growth income each year	$100,000
Miscellaneous income from parking, vending, etc. for each year	$400,000
Capital expenditures next year	$150,000
Increase in capital expenditures each year	$100,000
Vacancy & collection losses for each year	20% of potential gross income
Operating expenses next year	$500,000
Increase in operating expenses each year	$50,000
Going-in cap rate	14.20%
Terminal cap rate minus going-in cap rate	1.60%
Selling expenses as a share of terminal vale (selling price)	12.00%

a. What is expected NOI for the building in years 1, 2, 3, & 4? Round your answers to the nearest dollar and write them in the box.

	Year 1	Year 2	Year 3	Year 4
NOI

b. What is the net selling price of the building at the end of the holding period? Round your answer to the nearest dollar and write it in the box.

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

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