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A real estate is preparing a Discounted cash flow for a 5 year holding period and has estimated a NOI for the next 5 years
- A real estate is preparing a Discounted cash flow for a 5 year holding period and has estimated a NOI for the next 5 years to be $100000 for the 1st year $110,000 for the 2nd year $120000 for the 3rd year $130000 for the 4th year $140000 for the 5th year. The analyst has also estimated the NOI for the 6th year to be $150000 and property will sell for $1500000 based on a 10% terminal or exit ca[p rate. Beginning with year 1, the annual cash flows in the 5 year discounted cash flow should be
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