Use the information provided below to estimate the market value of the office building that has been described. Please attach a table to this page clearly showing all your computations similar to the power point slides on Canvas $($Handwritten or a printout of an MS excel spreadsheet are acceptable$).$ Question $1$

$20$ pts

What is the market value of this property according to the direct capitalization approach?

$1.$ Estimate the NOI for year $1.$

$2.$ Use the appropriate cap rate.

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$0$ words

Question $2$

$30$ pts

What is the market value of this property according to the discounted cash flow approach? Assume that you are going to sell the property at the end of the $\backslash (5^\{\backslash$text $\{$th $\}\}\backslash )$ year of ownership.

$1.$ Estimate the NOI for the holding period $($each year individually$).$

$2.$ Estimate the terminal value.

$3.$ Use the appropriate discount rate to arrive at the NPV$.$