The following is a ten year forecast of ABC apartments. The NOI will stabilise at a growth rate of 2% in year 9 and thereafter. The required rate of return is 12%. Compute the Present Value of the ABC apartments

Year NOI ($) % growth

1 338,800 -

2 355,740 5

3 373,527 5

4 388,468 4

5 404,007 4

6 416,127 3

7 428,611 3

8 441,469 3

9 450,299 2

10 459304 2