• Determine the net present value (NPV) of the proposed investment to its equity investors: Investment holding period: 5 years Before-tax cash flow (BTCF) for each of the next 5years: $124,892 Before-tax equity reversion (BTER) at end of 5 years: $1,638,790 Applicable discount rate: 6.0% Equity invested: $1,585,000 Going-out cap rate: 7.29% Year 6 NOI: $153,420

		$513,715
		$1,750,690
		$75,859
		$165,690