Ace Investment Company is considering the purchase of the Apartment Arms project. Next year’s NOI and cash flow is expected to be $2,110,000, and based on Ace’s economic
Required:
a. Assuming the above facts, what would the estimated value for the property be now?
b. What going-in cap rates should be indicated from recently sold properties that are comparable to Apartment Arms?
c. What would the estimated value for the property, if the required return changes to 12 percent?
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