Assume a property had an NOI of $750,000 in year 5 and that the long term growth rate for NOI was estimated to be 3%. Using a discount rate of 8% and the forward-looking cash flow estimate, what is the reversion (sale) value of the property in year 5? Hint: need to use Cap rate based on figures provided."

Please show work in excel

Factoring in both interest and depreciation (which are both tax deductible), what would be your Year 1 taxable income?"

		"a. $139,159"
		"b. $195,721"
		"c. $355,721"
		"d. ($20,841)"