Question
An investor asks you to establish a value for a small office building.The NOI for each year is as follows:YR 1 $102,000, TR 2 $111,000
An investor asks you to establish a value for a small office building.The NOI for each year is as follows:YR 1 $102,000, TR 2 $111,000 and YR 3 $118,500.The property is expected to sell for $2.2 million at the end of year three.The investor's required rate of return is 5.5%.The property value is?
Step by Step Solution
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Step: 1
To find the value of the office building we can use the formula for the present value ...
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
