Question
16. A property has a thirty-year NNN lease with rents at $20 for the entire lease period. Assume the following : all investors require a
16. A property has a thirty-year NNN lease with rents at $20 for the entire lease period. Assume the following : all investors require a 10% return; there is no available anytime; no CapEx; and no fees or sales cost. Based on the financials shown below, what is your purchase price?
| year | 1 | 2 | 3 | 4 | 5 | 6 |
| NNN Rent | $20 | $20 | $20 | $20 | $20 | $20 |
| Reimbursable income | 11 | 0 | 0 | 0 | 0 | 0 |
| Total Revenue | $31 | $20 | $20 | $20 | $20 | $20 |
| Year one NOI | $31 | |||||
| Groth | -35% |
A. $310 B. $210 C. $110 D. $200
17. Which of following is not a metric for measuring Enterprise value?
A. Capitalization rate
B. price per door
C. revenue multiple
D. IRRs
E. Replacement costs
F. price per square foot
25. True or False: the yield to maturity on a bond is really its internal rate of return.
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