Calculate the present value of a property that has 18,000 in annual rental income. Then, grow the rental income on a 3% compounded basis for years 2-6, calculating the Year 2+ value as: (prior year value) *(1+annual rental income growth rate). Calculate the year 6 sale value by dividing the Year 6 Annual Rental Income by the Terminal Value Sale Capitalization Rate of 12%. Finally, calculate the Net Present Value of the annual rent and sale price to determine the present value we should pay for the property if we want an 11% cap rate