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Consider an income producing property. The value of the property at time 0 is 100. The property's initial net operating income (NOI) is 1. The
Consider an income producing property. The value of the property at time 0 is 100. The property's initial net operating income (NOI) is 1. The NOI increases with the rate of 2%. That is, the NOI is 1 at time 1, 1.02 at time 2, and so on. The investor plans to keep the property permanently. Suppose the investor does not use the mortgage loan. The investment return (IRR) is r%. Calculate the value of r
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