Using the expected cash flows given below, what is the estimated value of the property, Vo, if purchased using "all cash" and if estimated using the 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 5.5 percent; the terminal capitalization rate, Rt, is 6.0 percent; and a five-year holding period.

  

Equity PGI -V&CL +Misc.inc. +Exp. Reimb. EGI -Oper.Ex. -CAPX NCF -ADS BTCF Opt Year O 400,000 Year 1 Year 2 Year 3 r Year 4 128,500 132,355 136,326 140,415 8,353 8,603 8,861 9,127 2,570 2,647 2,727 2,808 8,481 8,735 8,997 9,267 131,199 135,134 139,188 143,364 52,479 54,054 55,675 57,346 78,719 81,081 83,513 86,018 78,719 81,081 83,513 86,018 64,419 64,419 64,419 64,419 14,301 16,662 19,094 21,600 Year 5 144,628 9,401 2,893 9,545 147,665 59,066 88,599 88,599 64,419 24,180 Sale -Selling Exp Net Sale -Out. MB BTCF Sale 1,500,000 105,000 1,395,000 909,784 485,216