Section1. Mortgage-Equity Approach, Present Value (PV) Approach and Direct- Capitalization Method for calculating the appraised value or Price of a property that generates income. Information: GPI = $1,100,000 with a growth rate per year of 1.10 % V&C = 3% of GPI and Operating Expenses = 20% of GPI Loan terms are: 3.6%, 30 years (monthly compounding), LTV=90% Appreciation Rate = 1.10% per year and the holding-period is 2 years IRR to the developer is 20% A. Present Value Approach: (1) Calculate the WACC: (2) Calculate the Present Value of NOI: N=2 Section1. Mortgage-Equity Approach, Present Value (PV) Approach and Direct- Capitalization Method for calculating the appraised value or Price of a property that generates income. Information: GPI = $1,100,000 with a growth rate per year of 1.10 % V&C = 3% of GPI and Operating Expenses = 20% of GPI Loan terms are: 3.6%, 30 years (monthly compounding), LTV=90% Appreciation Rate = 1.10% per year and the holding-period is 2 years IRR to the developer is 20% A. Present Value Approach: (1) Calculate the WACC: (2) Calculate the Present Value of NOI: N=2