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Net operating income (NOI) is expected to be level at $1.5m per year for the next 3 years because of existing leases. Starting in Year
Net operating income (NOI) is expected to be level at $1.5m per year for the next 3 years because of existing leases. Starting in Year 4, the NOI is expected to increase to $2 because of lease rollovers and increase at 2 percent per year thereafter. Investors require a 10 percent return and expect to hold the property for 3 years. What is the current value of the property?
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