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Intial Loan amount 825,125 1 2 NOI Debt Service Cash flow (before tax) 94,300 $96,658 $99,074 72,654 72.654 $21.646 72,654 $24,004 $26,420 Mortgage payoff

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Intial Loan amount 825,125 1 2 NOI Debt Service Cash flow (before tax) 94,300 $96,658 $99,074 72,654 72.654 $21.646 72,654 $24,004 $26,420 Mortgage payoff Resale in year 3 Total Cash Flow PV of each year's CF 967,150 (802 083) $21,646 $24,004 $100.889 11.0% 19.501 19.402 139575 Consider the table above for a hypothetical income property that is available for purchase. Using the principles of mortgage equity capitalisation where the equity position is valued separately from debt what the property value (rounded to the nearest $100 Ch10 O$1,003,700 Ob$1.362.700 Oc$1299300 O4$1,182.200 10 points

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