Question

A property produces a first year NOI of $100,000 which is expected to grow by 2% per year. If the property is expected to be sold in year 10, what is the expected sale price based on a terminal capitalization rate of 9.5% applied to the eleventh year NOI?
(A) $1,308,815
(B) $1,283,152
(C) $1,263,158
(D) $1,257,992

Answer

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