Question
A property that produces a first year NOI of $18,000 is purchased for $135,000. The NOI is expected to increase by 7% in the fourth
A property that produces a first year NOI of $18,000 is purchased for $135,000. The NOI is expected to increase by 7% in the fourth year when some of the leases turnover. The resale price in year 8 is expected to be $149,000. What is the net present value of the property based on the 8-year holding period and a discount rate of 12%?
Answer: NPV = $17,829
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Unknown Market Wizards The Best Traders Youve Never Heard Of
Authors: Jack D. Schwager
1st Edition
0857198718, 978-0857198716
