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Next year, a property will have a stabilized NOI $200,000 that is expected to increase by 3% per year. The investment horizon is 3 years
Next year, a property will have a stabilized NOI $200,000 that is expected to increase by 3% per year. The investment horizon is 3 years at which time you expect the cap rate to be 10%. Determine the value of the property using the Discounted Cash Flow approach, for the three-year period. Use a 8% discount rate for the yearly cash flows and a 12% rate for the terminal value.
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