Question
A small shopping center is expected to produce net operating income of $23,880 in year 1. You expect NOI to increase by 4 percent per
A small shopping center is expected to produce net operating income of $23,880 in
year 1. You expect NOI to increase by 4 percent per year over an expected holding
period of seven years. Property value is expected to increase by 3 percent per year.
The discount rate is 10 percent. Assume there will be no costs of sale. Estimate
the value of the shopping center.
HINT: Use the Net Operating Income and Net
Selling Price Model.
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Parimutuel Applications In Finance New Markets For New Risks
Authors: Ken Baron, Jeffrey Lange
1st Edition
1403939500, 9781403939500
