Question: 4. The table below shows the projected net cash flows (including reversion) for Property A and Property B. If both properties sell at fair market

 4. The table below shows the projected net cash flows (including

4. The table below shows the projected net cash flows (including reversion) for Property A and Property B. If both properties sell at fair market value for a cap rate (initial and terminal net cash yields) of 79%, then which of these two properties is perceived to be riskier by the market? Why? Annual net cash flow projections for two properties ($1,000,0009); Year. 4 6 9 10 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 51.0000 $1.0000 $1.0000 $1.0000 515.2857 B $1.0000 $1.0200 $1 0404 51.0612 $1.0824 $1.1041 $1.1262 $1.1487 $1.1717 $18 6093

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