A project with expected NOI of $500 000 next year. NOI grow at 3% thereafter, forever. If the required rate of return 13 % and a new building cost is $ 4 000 000, what is the value of land?

2. A Mortgage loan of $60,00 with 12% Nominal Interest, 30 Years maturity, Monthly Payments and organization fees =3%.At the end year 5 the property is sold. What is the effective interest rate as a result of both the fees and the early loan repayment.

Answer rating: 100% (QA)

1 To calculate the value of the land we need to determine the Net Operating Income NOI in perpetuity and discount it back to the present value using t... View the full answer