Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are given an appraisal assignment to appraise the value of a CVS Drug Store on a net lease with income increasing 2.5% per year

You are given an appraisal assignment to appraise the value of a CVS Drug Store on a net lease with income increasing 2.5% per year on a compound basis. Starting NOI is $375,000 in year 1. The DCF is performed with a 10 year holding period with a yield rate of 12.5%. If income and value are increasing at 2.5% per year, and the going in and going out capitalization rates are the same and there are no resale costs.



What is the market value?

Step by Step Solution

3.66 Rating (164 Votes )

There are 3 Steps involved in it

Step: 1

To appraise the value of the CVS Drug Store on a net lease we need to perform a discounted cash flow ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

8th Edition

1285190904, 978-1305176348, 1305176340, 978-1285190907

More Books

Students also viewed these Accounting questions

Question

Find the derivatives of the function. f(x) = 7 + x sec x

Answered: 1 week ago