Initial Loan amount 825, 125 2 3 NOI 94,300 $96,658 $99,074 Debt Service 72654 72 654 72654 Cash flow (before tax) $21,846 $24,004 $26,420 Resale in year 3 967,150 Mortgage payoff (802 683) Total Cash Flow $21,846 $24,004 $190,888 PV of each year's CF @ 11.0% 19501 19.482 139,575 Considering the above table, if your commercial broker told you that current cap rates" for this kind of building were 8.0%, what value would he/she be suggesting the building was worth (rounded to nearest $10057 Ch9 $ 907,900 Oa. $1,178,800 b. $ 842,600 Oc Od $1,272,900