Commercial Real Estate Investment Bob buys a property that costs $1,000000 Bob will own the property for two years. The NOI from the property for years 1-3 is to the right: Year Bob will sell the property at the end of year 2 at a cap rate that is 250 basis points lower than the cap rate at which he bought the property. 1 2 3 NOI $100,000 $105,000 $110,000 LAT wge. 22. Assume Bob finances his purchase with a 50% LTV Fixed Rate IO loan at an annual rate of 5% with annual compounding and annual payments. Find the NPV of Bob's investment if his discount rate is 20%