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

Ve$,$ if purchased using a mortgage if estimated using discounted cash flow $($DCF$)$

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, Ro$,$ is $5\mathrm{.}5$

percent; the terminal capitalization rate, Rt$,$ is $6\mathrm{.}0$ percent; and a five$-$year holding period.

$(8$ pts $$ show work$)$