You own a real estate investment company and your interns have provided the below annual estimates of NOI for an office building you can acquire today for $10m. A nearby property of a similar type and class recently sold for $9.81m and the owner had a first year projected NOI of 651,561 of the property. Based on the direct capitalization method of valuation, what is the cap rate of the comparable building? Please indicate your answer as percent with 2 digits right of the decimal (e.g., 0.0644> 6.44) and do NOT input the percent sign (\%). What is your estimate of the market value of the property if you apply the same cap rate to the property you are considering to purchase? Please round your answer to the nearest cent (ie, two digits right of the decimal). What is the 1st year Debt-Coverage Ratio (DCR) of the investment? Please indicate your answer as percent with 2 digits right of the decimal (e.g., 0.0644> 6.44) and do NOT input the percent sign (\%). What is your Net Present Value (NPV). of the investment opportunity with leverage if your opportunity cost of equity is 10\%? Please round your answer to the nearest cent (ie, two digits right of the decimal). What is the Unlevered Internal Rate of Return of the investment? Please indicate your answer as percent with 2 digits right of the decimal (e.g., 0.0644> 6.44) and do NOT input the percent sign (\%). You own a real estate investment company and your interns have provided the below annual estimates of NOI for an office building you can acquire today for $10m. A nearby property of a similar type and class recently sold for $9.81m and the owner had a first year projected NOI of 651,561 of the property. Based on the direct capitalization method of valuation, what is the cap rate of the comparable building? Please indicate your answer as percent with 2 digits right of the decimal (e.g., 0.0644> 6.44) and do NOT input the percent sign (\%). What is your estimate of the market value of the property if you apply the same cap rate to the property you are considering to purchase? Please round your answer to the nearest cent (ie, two digits right of the decimal). What is the 1st year Debt-Coverage Ratio (DCR) of the investment? Please indicate your answer as percent with 2 digits right of the decimal (e.g., 0.0644> 6.44) and do NOT input the percent sign (\%). What is your Net Present Value (NPV). of the investment opportunity with leverage if your opportunity cost of equity is 10\%? Please round your answer to the nearest cent (ie, two digits right of the decimal). What is the Unlevered Internal Rate of Return of the investment? Please indicate your answer as percent with 2 digits right of the decimal (e.g., 0.0644> 6.44) and do NOT input the percent sign (\%)
