Question: 10 points Save Answer Initial Loan amount: 784,875 1 2 3 NOI 89,700 $91,494 $93,324 Debt Service 66,568 66,568 66,568 Cash flow (before tax) $23,

10 points Save Answer Initial Loan amount: 784,875 1 2 3 NOI 89,700 $91,494 $93,324 Debt Service 66,568 66,568 66,568 Cash flow (before tax) $23, 132 $24,926 $26,756 Resale in year 3 906,575 Mortgage payoff (746, 187) Total Cash Flow $23, 132 $24,926 $187,144 PV of each year's CF @ 10.0% 21,029 20,600 140,604 Consider the table above for a hypothetical income property that is available for purchase. Using the principles of mortgage equity capitalization (where the equity position is valued separately from debt), what is the estimated total property value (rounded to the nearest $100)? Ch10 O a. $967, 100 O b. $854,200 O c. $998,600 O d. $896,400.

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