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Please fill out rest of blanks with functions shown, thank you Problem 1 a. Find the value of the property today based on 7 years
Please fill out rest of blanks with functions shown, thank you
Problem 1 a. Find the value of the property today based on 7 years of net operating income and a selling price based on the 8 th year of NOL. Present Value of Property equals: \begin{tabular}{|l|l|} \hline & PV of net operating income in years 17 \\ \hline & PV of Sales Price, from below \\ \hline & Current Property Value (hint: the answer is $12,069,902] \\ \hline \end{tabular} PV of net operating income years 1 - 7: Discount Rate (aka expected return for investors): LT Growth Rate: Terminal Cap Rate at end of yr 7 : Sales Price at end of year 7 : PV of Sales Price \begin{tabular}{|r|} \hline 12.00% \\ \hline 3.00% \\ \hline 9.00% \\ \hline \\ \hline \\ \hline \end{tabular} b. Terminal cap rate at tend of year 7 (from above)? c. Going-in cap rate based on year 1 NOI? d. Explain why (b) is less than (c)Step by Step Solution
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