You are given an appraisal assignment to appraise the value of a CVS Drug Store on a net lease with income increasing 2.5% per year on a compound basis. Starting NOI is $375,000 in year 1. The DCF is performed with a 10 year holding period with a yield rate of 12.5%. If income and value are increasing at 2.5% per year, and the going in and going out capitalization rates are the same and there are no resale costs.

What is the market value?

Answer rating: 100% (QA)

To appraise the value of the CVS Drug Store on a net lease we need to perform a discounted cash flow ... View the full answer