Question: Next year, a property will have a stabilized NOI $200,000 that is expected to increase by 3% per year. The investment horizon is 3 years

Next year, a property will have a stabilized NOI $200,000 that is expected to increase by 3% per year. The investment horizon is 3 years at which time you expect the cap rate to be 10%. and a 12% rate for the terminal value.

a) what is the terminal value in year 3

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