Use the Ch10_Apartment tab in the Excel Workbook provided on the website. Suppose that investors required only a 9 percent rate of return (discount rate) instead of 11 percent and the terminal cap rate used to estimate the resale price was 8 percent instead of 9 percent.
a. Use the Excel template to see how your answer would change.
b. Optional. Use RealNex Market Edge to see how your answer would change. To use RealNex Market Edge, sign up for a trial subscription at http://info.realnex.com/edu and use the Real Estate Exchange as described in the appendix to import the Oakwood Apartments file into your account.