real estate

Question 2 Use the following property data: Cash flow from operations. Year NOI Debt Service 1 $160,000 $125,000 2 $160,000 $125,000 3 $160,000 $125,000 $160.000 $125,000 5 $160,000 $125,000 Cash Flow at sale: Sale Price: $2,000,000 Cost of sale: $115,000 Mortgage balance: $1,500,000 a. Assuming the going.in capitalization rate is 8.00 percent. compute a value for the property using direct capitalization b. Assuming the required yield/return on unlevered cash flows is 10 percent and that the property will be held by a buyer for five years, compute the value of the property based on discounting unlevered cash flows. For the toolbar, press ALT+F10 (PC) or ALT FN+F10 (Mac). BI VS Paragraph Arial 14px A 2 T. X