**In this paperwork of FIN 467 Week 4 Individual Assignment Problem Set you will find the answers on the next questions:**

1) You are considering the purchase of an office building for $1.5 million today. Your expectations include these:first-year gross potential income of $340,000vacancy and collection losses equal to 15 percent of gross potential incomeoperating expenses equal to 45 percent of effective gross incomeYou expect to sell the property five years after it is purchased. You estimate that the market value of the property will increase 4 percent per year after it is purchasedand you expect to incur selling expenses equal to 6 percent of the estimated future selling price.a) What is the estimated net operating income (NOI) for the first year of operations?b) What is the estimated overall rate of return for the first year of operations?c) What dollar amount will you net from the sale of property at the end of year 5?