$\backslash$table$[[,$Year $0,$Year $1,$Year $2,$Year $3,$Year $4,$Year $5,,$Sale,$1,500,000$

Using the expected cash flows given above, what is the estimated value of the

property today, Vo$,$ if estimated using the direct capitalization approach? Assume the

overall required return unlevered is $8$ percent; the required return of the equity investor if

levered is $15$ percent; the $$going$-$in$$ capitalization rate, R$0,$ is $5\mathrm{.}5$ percent; and the

terminal capitalization rate, Rt$,$ is $6\mathrm{.}0$ percent $(8$ pts $$ show work$)$