Question: Read the two tutorials posted about Cap Rates. Build out a new story panel within the consolidated model. See my example within the Lecture #8

Read the two tutorials posted about Cap Rates. Build out a new story "panel" within the consolidated model. See my example within the Lecture #8 PP deck. Solve for the Purchase Price assuming an Initial Cap Rate of 5.88%. Solve for the Projected Selling Price assuming an Exit Cap Rate of 6.38%. Calculate the string of Annual Rate of Return and the 10-yr Average Rate of Return. Consider why the annual rate of return changes in years 6 and 11. What happens to the Purchase Price if the Initial Cap Rate moves up or down 25 bp? What happens to the Projected Selling Price if the Exit Cap moves by 25 bp? If you wanted to buy this property, what's the most beneficial Initial Cap and why? As the investor, what is the most beneficial Exit Cap and why

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