The table below shows $10-$year cash flow projections $($in millions, including

resale$)$ for Property A and Property B$.$

Year $12345678910$

A $1\mathrm{.}0001\mathrm{.}0201\mathrm{.}0401\mathrm{.}0611\mathrm{.}0821\mathrm{.}1041\mathrm{.}1261\mathrm{.}1491\mathrm{.}17216\mathrm{.}253$

B $1\mathrm{.}0001\mathrm{.}0071\mathrm{.}0141\mathrm{.}0211\mathrm{.}0281\mathrm{.}0351\mathrm{.}0431\mathrm{.}0501\mathrm{.}05714\mathrm{.}297$

$($a$)$ If both properties sell at cap rates of $7\mathrm{.}5$ percent $($going$-$in and going$-$out$),$ what

is the expected total return on a $10-$year investment in each property?

$($b$)$ If the market cap rates represent fair market values, which property is the more

risky investment? How do you know $($explain your reasoning$)?$

$($c$)$ What is the annual growth rate in operating cash flows for each property during

the first nine years?

$($d$)$ How is this growth related to the cap rate and your expected total return for each poperty?