Question: Based on the below data, what is the expected NPV of your investment assuming it was purchased 100% cash. Net operating income $200,000 Sell the
Based on the below data, what is the expected NPV of your investment assuming it was purchased 100% cash.
Net operating income $200,000 Sell the property in five years.
Assume the net operating income increases at 2.25%
Assume the terminal cap rate is 11%
Assume the going in cap rate was 9.5%
Discount rate on similar investments 8%
Bank financing is offered at 7% for 20 years
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