Your client is opening a new building this year. According to budget projections, annual NOI forecasts are as follows:

• Year 1 (next year) $35,000
• Year 2 $55,000
• Year 3 $55,000
• Year 4 $68,000
• Year 5 $107,000

The required rate of return on investments of this type is 11%. The capitalization rate for similar 4-year old buildings is 10%. Cost of sale is $53,500. (Questions 29-30)

29. What are the sales proceeds at the end of Year 4?

Group of answer choices

$626,000

$680,000

$1,016,500

$1,070,000

30. What is the market value of this property using discounted cash flow analysis?

Group of answer choices

$785,986.33

$830,780.03

$922,164.64

$1,187,832.09