All numbers are in $ '000.

Consider an income property. Next three years its NOIs will be $25,000, $28,000 and $30,000.

Then NOI will be growing at a constant rate of 3% per year.

If you buy the Subject property, you are planning to hold it for three years then you would sell it.

When you sell it, the terminal cap. rate you are going to apply is 11%. (Hint: pls use this rate to calculate the reversion value, i.e. sale price)

Your discount rate is 12% per year. (This is the rate to be used to discount the three NOIs in the next three years and the sale price).

How much will be your maximum offer for the subject property?

Group of answer choices

$310,374

340,921

349,606

None of the above