Answered step by step
Verified Expert Solution
Question
1 Approved Answer
An appraiser determines that a comparable property would have a holding period of 5 years, terminal cap rate (based on Yr6NOI ) of 9% and
An appraiser determines that a comparable property would have a holding period of 5 years, terminal cap rate (based on Yr6NOI ) of 9% and estimates 10% selling expenses. The property's purchase price was $455,000.00. The appraiser projects the following cash flows for NOI: Year 1: $45,000.00; Year 2: $46,000.00; Year 3 : $53,000.00; Year 4: $58,000.00; Year 5: $43,000.00; Year 6: $38,000.00. What is the IRR (internal rate of return) for this comparable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started