According to your interviews with hotel investors, equity yield rates are 14%. Year 6 NOI is expected to be 3% higher than year 5. Terminal capitalization rates are expected to be 13% at the time of the sale. Brokers charge 3% to the gross sales price to market the property you have also estimated the following NOI streams for the first five years of the property calculate the market value of the property using the income capitalization approach.

Year 1 $875,000.00

Year 2 $901,000.00

Year 3 $928,000.00

Year 4 $956,000.00

Year 5 $985,000.00

Fill out the following templates:

Year	NOI	PV Factor	PV Cash Flow
1
2
3
4
5
5
Total

Terminal Cap Rate	?%
Gross Sales Price
Brokers Fee (3%)
Net Sales Price