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Table 1.Yellen Apartments. Year NOI PV Lump Sum Factor at 10% PV 1 $91,670 .9091 $83,337 2 $94,420 .8264 3 $ .7513 4 $ .6830
Table 1.Yellen Apartments.
Year | NOI | PV Lump Sum Factor at 10% | PV |
---|---|---|---|
1 | $91,670 | .9091 | $83,337 |
2 | $94,420 | .8264 |
|
3 | $ | .7513 |
|
4 | $ | .6830 | $ |
|
| Total PV and Appraised Value | $ |
The values in Table 1 (Yellen Apartments) are partially filled in. The NOI is projected to grow at 3% per year for four years and at 2% thereafter. The going out cap rate is 12%.
The appraised value for Yellen Apartments is:
a. $1,175,000
b. $1 million
c. $974,000
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