Question: 3 . Your first - year net operating income is 1 0 0 , 0 0 0 , year 5 net operating income is 1

3. Your first-year net operating income is 100,000, year 5 net operating income is 115,000, and year 6 net operating income is 120,000. Going-in cap rate is 5% while going-out cap rate is 8%. What is the estimated selling price in year 5?
A.1,500,000
B.1,437,500
C.1,250,000
D.2,400,000
4. What kind of method do you use when estimating the selling price?
A. Direct Cap Method
B. DCF model
C. Recent Sales Price
D. Random Number

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