Question
A project with expected NOI of $500 000 next year. NOI grow at 3% thereafter, forever. If the required rate of return 13 % and
A project with expected NOI of $500 000 next year. NOI grow at 3% thereafter, forever. If the required rate of return 13 % and a new building cost is $ 4 000 000, what is the value of land?
2. A Mortgage loan of $60,00 with 12% Nominal Interest, 30 Years maturity, Monthly Payments and organization fees =3%.At the end year 5 the property is sold. What is the effective interest rate as a result of both the fees and the early loan repayment.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 To calculate the value of the land we need to determine the Net Operating Income NOI in perpetuity and discount it back to the present value using t...
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Step: 2
Step: 3
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Linear Algebra A Modern Introduction
Authors: David Poole
3rd edition
9781133169574 , 978-0538735452
