Initial Loan amount: 825,125 1 94,300 72,654 $21,646 NOI Debt Service Cash flow (before tax) Resale in year 3 Mortgage payoff Total Cash Flow 2 3 $96,658 $99,074 72,654 72.654 $24,004 $26,420 967,150 (802,683) $24,004 $190,888 $21,646 PV of each year's CF @ 11.0% 19,501 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 $100)? Ch9 $ 842,600 O a. $1,272,900 b. $ 907,900 Oc. $1,178,800 d