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The last eight questions are based on the following data An Omce building is listed for sale at $500,000. You can borrow 30% at 6%

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The last eight questions are based on the following data An Omce building is listed for sale at $500,000. You can borrow 30% at 6% interest amortized monthly for a 20 year term and put 20% down. Your required unleveraged IRR IS 10% and you want to use a 9% terminal caprate you plan a five year holding period after the purchase. You have calculated the annual pre-debt service NOI for each year as YC 1 - 540.000 Y 2 = $41.000 Y3542.000 Y 4 - $45.000 Y6 544000 Yr6545.000 What is the value of the Reversion at the end of the holding period? The last eight questions are based on the following data An Omce building is listed for sale at $500,000. You can borrow 30% at 6% interest amortized monthly for a 20 year term and put 20% down. Your required unleveraged IRR IS 10% and you want to use a 9% terminal caprate you plan a five year holding period after the purchase. You have calculated the annual pre-debt service NOI for each year as YC 1 - 540.000 Y 2 = $41.000 Y3542.000 Y 4 - $45.000 Y6 544000 Yr6545.000 What is the value of the Reversion at the end of the holding period

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