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Question
A property that produces a first year NOI of $80,000 is purchased for $750,000. The NOI is expected to increase by 15% in the sixth year when some of the leases turnover. The resale price in year 10 is expected to be $830,000. What is the net present value of the property based on the 10-year holding period and a discount rate of 9.5%?
A) $87,433
B) $87,221
C) $95,294
D) $116,490
Answer
This answer is hidden. It contains 19 characters.
Related questions
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.564474 A) Between 6% and 7%
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A transaction in which a borrower sells a property for less than the current balance of the loan and then provides all of the proceeds to the sale to the lender, typically in full satisfaction of the loan.
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D) All of the above
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$
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$
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B) Effective gross income
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