You decide to buy a small office building with 1 tenant. The tenant has a lease that calls for monthly rent payments of $2,500 per month for the next 6 years.  After that, the lease expires.  You expect to be able to increase the rent 4% per year for years 7-12.  At the end of year 12 you intent to sell the building for $200000

Create a table showing the projected cash flows for the investment, assuming the next rental payment occurs one month from today.

Assuming you need to earn 11% on this investment, what is the maximum price you would be willing to pay for the building today?  (ignore taxes and amortization for this analysis)