Question: answer is -172900- show me how to get this using EXCEL formulas 23. An office building property can be purchased for $3.6 million. It is

answer is -172900- show me how to get this using EXCEL formulas answer is -172900- show me how to get this using EXCEL formulas

23. An office building property can be purchased for $3.6 million. It is expected to generate annual NOIs of: Yr.1: $334,250; Yr.2: $344,275; Yr.3: $354,600; Yr.4: $365,250; Yr.5: $376,200; and is expected to be sold resulting in a net sale proceed in Yr. 5 of $3.8 million. Assume the project includes a $3.25 million loan having an annual debt service of $275,000 per year, and that the outstanding mortgage balance at the end of the five-year holding periods will be $3.0 million. Assume also that the overall capitalization rate is 9.0 percent; the investor's required return on the project, unleveraged, is 12 percent; and the investor's required return on the project, leveraged, is 18 percent. Using the appropriate information, determine the NET PRESENT VALUE of the project (UNLEVERED) by applying discounted cash flow analysis. ( 5 points)

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