Zenith Investment Company is considering the purchase of an office property. It has done an extensive market analysis and has estimated that based on current market supply/demand relationships, rents, and its estimate of operating expenses, annual NOI will be as follows: Y1: $1,000,000; Y2: $1,000,000; Y3: $1,000,000; Y4: $1,200,000; Y5: $1,250,000; Y6: $1,300,000; Y7: $1,339,000; Y8: $1,379,170; A market that is currently oversupplied is expected to result in cash flows remaining flat for the next three years at $1,000,000. During years 4, 5, and 6, market rents are expected to be higher. It is further expected that beginning in year 7 and every year thereafter, NOI will tend to reflect a stable, balanced market and should grow at 3