Given the Following Information, Calculate the Estimated Terminal Value of the Property

question 11

Multiple Choice

Given the following information, calculate the estimated terminal value of the property at the end of its holding period. Going-out cap rate: 9%, Estimated holding period: 5 years, NOI for year 5: $100,500, NOI for year 6: $102,000.

• A) $1,113,333
• B) $1,116,667
• C) $1,133,333
• D) $1,166,667

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Definitions:

Demand Function

A mathematical representation showing the relationship between the quantity demanded of a good and its price, along with other factors affecting demand.

Supply Function

Represents the relationship between the quantity of a good that producers are willing to sell and the price of the good.

Quantity Supplied

The amount of a particular good or service that suppliers are willing and able to provide at a given price during a certain period.

Demand Function

A mathematical expression showing the relationship between the quantity demanded of a good and its price, holding other factors constant.