*Consider a building with a very long economic life. Assume Year 6 NOI will be $200,000 and is expected to grow at a rate of 3% per year.

At the end of Year 5 the asset will be sold to a buyer who has a required rate of return of 8%. Based on this, what is the net reversion value (REV) at the end of Year 5 assuming 2% in selling costs?

Group of answer choices

none of the choices are correct

$4.0M

$3.9M

$2.5M