Question $105$ pts

$($CO F$)$ A property that produces a first year NOI of $$85,000$ is purchased for $$750,000.$ The NOI is expected to increase by $15\%$ in the sixth year when some of the leases turnover. The resale price in year $10$ is expected to be $$900,000.$ What is the net present value of the property based on the $10-$year holding period and a discount rate of $9\mathrm{.}5\%?$

Group of answer choices

$$176,294$

$$116,490$

$$177,959$

$$167,433$

Question $85$ pts

$($CO G$)$ Risk due to potential tax law changes is referred to as

Group of answer choices

tax risk.

financial risk.

legislative risk.

business risk.