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points Year 1 Year 2 $91,000 $72,500 $18,500 NOI DS Cash flow Resale in your 3 Less mortgage balance Total cash flow Present value of

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points Year 1 Year 2 $91,000 $72,500 $18,500 NOI DS Cash flow Resale in your 3 Less mortgage balance Total cash flow Present value of cash flow @ 11% Year 3 $4,640 $98,426 $72,500 $72,500 $22.140 $25,926 $1.094.000 5663,317 $22.100 $455,600 $17,960 $333,868 $18,500 $16,667 Consider the table above for a hypothetical income property that is under consideration for purchase with a 5/15,000 toan Consider 19% discount rate. Using the principles of mortgago equity capitalization, what in the estimated total property value (rounded to the nearest $1001? $1,136,800 $368,504 $1,083,504 $715,000 $421,800

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