Suppose an examination of a pro forma reveals that the fifth…

Suppose an examination of a pro forma reveals that the fifth-year net operating income (NOI) for an income-producing property you are analyzing is $1,705,800 (you can assume that this cash flow occurs at the end of the year). If you estimate the projected NOI growth rate for the property to be 5% per year, determine the projected sale price of the property at the end of year five if the going-out capitalization rate is 6.5%. Which of the following is closest to the projected sale price of the property?

Given the following assumptions, which of the possible answe…

Given the following assumptions, which of the possible answers represents the property’s Net Operating Income (NOI)? Potential Gross Income (PGI) = $1,200,000 Effective Gross Income (EGI) = 1,140,000 V/L = 5% CapEx Reserve = $16,000 Annual OpEx = $240,000 *CapEx is treated as above the line.