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Question 23 1 pt. An office building is listed for sale for $500,000. You can borrow 80% at 5% interest and a 20 year loan
Question 23 1 pt. An office building is listed for sale for $500,000. You can borrow 80% at 5% interest and a 20 year loan term, and put 20% down. Your required unleveraged IRR is 10%, and you want to use an 8.25% terminal capitalization rate. You plan on a five year holding period after purchase. You estimate first year NOI as $42,000, and expect NOI to increase $1,000 each year. What is the value of the reversion at the end of the holding period? O $539,275 O $583,128 O $547,008 $569,697 Question 24 1 pts What is the unleveraged IRR indicated? Question 23 1 pt. An office building is listed for sale for $500,000. You can borrow 80% at 5% interest and a 20 year loan term, and put 20% down. Your required unleveraged IRR is 10%, and you want to use an 8.25% terminal capitalization rate. You plan on a five year holding period after purchase. You estimate first year NOI as $42,000, and expect NOI to increase $1,000 each year. What is the value of the reversion at the end of the holding period? O $539,275 O $583,128 O $547,008 $569,697 Question 24 1 pts What is the unleveraged IRR indicated
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