Consider a building with a very long economic life. Assume at the end of year 6, NOIwill be $80,000 and is expected to grow at a rate of 2 percent per year. Your company's required rate of return is 12 percent. As part of your analysis, you must calculate the reversion value (REV) at the end of year 5, which would be?

Answer rating: 100% (QA)

To calculate the reversion value REV at the end of year 5 we need to find the value of the property ... View the full answer