Question
You are consider investing in an industrial building. The NOI is projected to be $100,000 in the first year. You think the NOI will grow
You are consider investing in an industrial building. The NOI is projected to be $100,000 in the first year. You think the NOI will grow at the rate of 4% per year until the end of year 7, and 2% after that (indefinitely). All payments are in arrears. The discount rate is 6% per year. What is the current cap rate?
| 5.44% | ||
| 6.38% | ||
| 2.85% | ||
| 3.61% | ||
| 4.53% |
which one is the right choice?
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Handbook Of Asset And Liability Management Volume 2
Authors: S. A. Zenios, W. T. Ziemba
1st Edition
0444528024, 978-0444528025
