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Consider a building with a very long economic life. Assume at the end of year 6, NOI will be $61,000 and is expected to grow
Consider a building with a very long economic life. Assume at the end of year 6, NOI will be $61,000 and is expected to grow at a rate of 2 percent per year. Your company's required rate of return is 9 percent. As part of your analysis, you must calculate the reversion value (REV) at the end of year 5, which would be:
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