[DCF Uneven CFs] You are appraising a small office building using the income approach. Use the data in the tables below to estimate the market value of the property today using discounted cash flow analysis. You may assume there are no sale expenses. Year 1 Projected NOI from Rental Operations 3 $100,000 2 $103,000 $106,090 Typical Investor's Assumptions in this Market 1,419,829 Overall cap rate Discount rate Holding period Terminal value 7.0% 9.0% 3 years $1,500,000 (Input your answer rounded to the nearest whole dollar and without the $ sign, e.g., 1000)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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[DCF Uneven CFs] You are appraising a small office building using the income approach. Use the
data in the tables below to estimate the market value of the property today using discounted cash
flow analysis. You may assume there are no sale expenses.
Year
1
2
3
Projected NOI from
Rental Operations
$100,000
$103,000
$106,090
Typical Investor's Assumptions
in this Market
1,419,829
Overall cap rate
Discount rate
Holding period
Terminal value
7.0%
9.0%
3 years
$1,500,000
(Input your answer rounded to the nearest whole dollar and without the $ sign, e.g., 1000)
Transcribed Image Text:[DCF Uneven CFs] You are appraising a small office building using the income approach. Use the data in the tables below to estimate the market value of the property today using discounted cash flow analysis. You may assume there are no sale expenses. Year 1 2 3 Projected NOI from Rental Operations $100,000 $103,000 $106,090 Typical Investor's Assumptions in this Market 1,419,829 Overall cap rate Discount rate Holding period Terminal value 7.0% 9.0% 3 years $1,500,000 (Input your answer rounded to the nearest whole dollar and without the $ sign, e.g., 1000)
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