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An investor is considering the purchase of an office complex. Next years NOI and cash flow is expected to be $1,000,000 and economic forecast of
An investor is considering the purchase of an office complex. Next years NOI and cash flow is expected to be $1,000,000 and economic forecast of market supply and demand and vacancy levels will continue to be in balance. As a result NOI should increase by 4 percent each year and the investor believes she should earn 12% total return on the investment. What is the NPV of this investment if the purchase price is $13M?
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