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What is your current estimate of the below property's current market value using the discounted cash flow (DCF) method if a representative owner is assumed
What is your current estimate of the below property's current market value using the discounted cash flow (DCF) method if a representative owner is assumed to have a 10% discount rate (ie, opportunity cost of equity) and they anticipate receiving $200,000 in net sale proceeds when they sale the property at the end of year 3? Hint: Use uneven cash flows of financial calculator. Year 0 Year 1 Year 2 Year 3 Year 4 Net Operating Income 13,750 14,035 14,326 14,622m
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