a) what is the present value id the equity investment ( E ) in the property

b) what ia the total value of the property?

c) what is implied ( going -in) cap rate ans EDR?

The NOI of a small office building is $160,000 for the first year. Financing will be based on a DCR of 1.3 applied for the first year NOI, interest rate is 11% and will be amortized over 25 years with yearly payments. The NOI is estimated to grow with 4 % per year and the investor will hold the property for 5 years. The terminal cap rate is estimated to be 8% and the investor require a 12% rate of return on equity (equity yield rate). Assume the Loan Balance to be $996,546 in year 5. a) What is the present value of the equity investment (E) in the property? The NOI of a small office building is $160,000 for the first year. Financing will be based on a DCR of 1.3 applied for the first year NOI, interest rate is 11% and will be amortized over 25 years with yearly payments. The NOI is estimated to grow with 4 % per year and the investor will hold the property for 5 years. The terminal cap rate is estimated to be 8% and the investor require a 12% rate of return on equity (equity yield rate). Assume the Loan Balance to be $996,546 in year 5. a) What is the present value of the equity investment (E) in the property