10 8 pts Valuation: Discounted Income An income-producing property is being auctioned, and you plan to bid. The current NOI is $70,000, and if you hold it for 5 years, you think the NOI will grow by 3% per year, and you can likely sell it at the end of year 5 at a cap rate of 9%. Your target rate of return is 12%. How much should you bid? 0 1 2 4 6 3 $74,263 $70,000 5 $78,786 $72,100 $76,491 $81,149 3.0% 9% Bid Price