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I will thumbs up if you answer quick. PLEASE GIVE ANSWERS WITH 4 DECIMAL POINTS JFK Properties has a required rate of return of 17%.

I will thumbs up if you answer quick. PLEASE GIVE ANSWERS WITH 4 DECIMAL POINTS image text in transcribed
JFK Properties has a required rate of return of 17%. The firm is considering the purchase and renovation of an office building, NOI is expected to decline by 2% annually for the first two years while the property is renovated. In years 3 and 4 , NOI is expected to increase by 25% and 15% respectively. Starting year 5 . NOI will stabilize and constantly increase by 5% annually. If the current NOI of the office buiding is $460,000 and JFK Properties intends to sell the property at the at end of year 4 , What is the terminal capitalization rate

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