Question: Use this information about a certain property to answer questions 16 through 17: Projected Year 1 NOI: $100,000. Projected Year 11 NOI: $121,899. Projected Year

Use this information about a certain property to answer questions 16 through 17:

Projected Year 1 NOI: $100,000.

Projected Year 11 NOI: $121,899.

Projected Year 10 resale (reversion) value: $1,523,738.

Current (going-in) market cap rate for similar properties: 7%.

What is the projected terminal (going-out) cap rate?

Question options:

6.56%.

7.00%.

8.00%.

10%.

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