The following questions are based on the series of the following cash flows. You plan to sell the property in year 5. The buyer anticipates buying the property for $3,000,000 and selling the property for $3,500,000. The NOI for each year is noted. Please put your answer in percentage with two decimal places. For instance, put 7.63 for 7.63%. Please put dollar amounts with two decimal places as well. Please enter a positive value. All questions should be completed in Excel. Rounding will result in an incorrect answer.
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 NOI
$250,000 $258,000 $266,000 $274,000 $282,000 $290,000 $300,000
Property: $3,000,000
Transactions: $3,500,000
4. If you decided to sell the building at the end of year 3 with an expected cap rate of 8%, what is the reversion value? (Sale price before fees)