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Posted on May 19, 2024

Income:$ 6 2 5 , 0 0 0 Expenses:$ 2 9 0 , 0 0 0 Capitalization Rate: 8 . 4 % Discount Rate: 6

Income:$

625, 000

Expenses:$

290, 000

Capitalization Rate:

8.4 %

Discount Rate:

6.5 %

Residual Rate:

9.5 %

Growth Rate:

5 %

Inflation:

3 %

Model Term:

10

Years

1 .

What is the asking price?

2 .

What is the residual value?

3 .

What is the IRR?

4 .

What is the NPV

? 5 .

Do you recommend buying this deal? Why?SHOW YOUR WORK IN EXCEL!

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