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The following questions are based on the series of the following cash flows. You plan to sell the property in year 5. The buyer anticipates
The following questions are based on the series of the following cash flows. You plan to sell the property in year 5. The buyer anticipates buying the property for $3,000,000 and selling the property for $3,500,000. The NOI for each year is noted. Please put your answer in percentage with two decimal places for instance put 7.63 for 7.63%. Please put dollar amounts with two decimal places as well. Please enter a positive value. All questions should be completed in excel. Rounding will result in an incorrect answer. Year o Year 1 Year 2 Year a Year 4 Year 5 Year 6 Year 7 NOI 250,000 258,000 266,000 274,000 282,000 290,000 300,000 Property (3,000,000) Transactions 3,500,000 4. If you decided to sell the building at the end of year 3 with an expected cap rate of 8%. What is the reversion value? (Sale price before fees)
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