Expected annual growth in net operating income (NOI) Years 210: Terminal growth rate (post-Year 10): Rent income Year 1: Maintenance expense Year 1: Purchase price: Discount rate: 5% 2% 120.000 30.000 1.600.000 6% 4% 2% 100.000 30.000 1.400.000 6% All City A Year: Net operating income Initial investment (enter as negative) Terminal value Net cash flow -1.600.000 -1.600.000 0 0 0 0 0 0 0 0 0 0 Net present value 10 City B Year: Net operating income Initial investment (enter as negative) Terminal value Net cash flow -1.400.000 -1.400.000 0 0 O 0 O O Net present value