QUESTION 5 A property is leased for $24,000 per year although market rents are currently $27,500 per year and are expected to increase by 2% per year. The property is expected to be sold at the end of year 10 based on a 10% terminal 9 (exit) cap rate applied to the eleventh year NOI. The current lease on the property will expire at the end of year 10 so the property can be leased in the eleventh year at market rates. What is the value of the leased fee estate based on an 11.5% discount rate? Note for this question you will need to: Determine the NPV of the 10 years of NOI Determine the year 11 NOI Determine the sales price of the asset using the 11th yed NOI and appropriate cap rate Determine the NPV of the sales price determined in c, above Add the result determined in a and d to get the answer O $251,298 O $298,325 O $257,066 O $271,486 QUESTION 5 A property is leased for $24,000 per year although market rents are currently $27,500 per year and are expected to increase by 2% per year. The property is expected to be sold at the end of year 10 based on a 10% terminal 9 (exit) cap rate applied to the eleventh year NOI. The current lease on the property will expire at the end of year 10 so the property can be leased in the eleventh year at market rates. What is the value of the leased fee estate based on an 11.5% discount rate? Note for this question you will need to: Determine the NPV of the 10 years of NOI Determine the year 11 NOI Determine the sales price of the asset using the 11th yed NOI and appropriate cap rate Determine the NPV of the sales price determined in c, above Add the result determined in a and d to get the answer O $251,298 O $298,325 O $257,066 O $271,486