Assume that we have a commercial real estate property whose projected 5-year cash flows are the...

 

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Assume that we have a commercial real estate property whose projected 5-year cash flows are the following: • Year -1:-$50 • Year 0: -$100 • Year 1: $20 • Year 2: $25 • Year 3: $30 • Year 4: $35 • Year 5: $140 Assuming a discount rate of 2%. Calculate the overall cap rate of the property. Assume that we have a commercial real estate property whose projected 5-year cash flows are the following: • Year -1:-$50 • Year 0: -$100 • Year 1: $20 • Year 2: $25 • Year 3: $30 • Year 4: $35 • Year 5: $140 Assuming a discount rate of 2%. Calculate the overall cap rate of the property.

Answer rating: 100% (QA)

To calculate the overall cap rate of the property we need to find the present value of the projected ... View the full answer