A Property That Produces a First Year NOI of $80,000

question 28

Multiple Choice

A property that produces a first year NOI of $80,000 is purchased for $750,000.The NOI is expected to increase by 15% in the sixth year when some of the leases turnover.The resale price in year 10 is expected to be $830,000.What is the net present value of the property based on the 10-year holding period and a discount rate of 9.5%?

• A)$87,433
• B)$87,221
• C)$95,294
• D)$116,490

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Definitions:

Ethnographic Research

A qualitative research method that involves observing and interacting with participants in their real-life environment to gain deep insights into their cultures, behaviors, and attitudes.

Depth Interviews

A qualitative research method involving detailed, one-on-one discussions to explore deeper insights into an individual's attitudes, beliefs, or behaviors.

Social Media

Online platforms that enable users to create, share content, or participate in social networking.

Mall Intercept Interviews

A qualitative research method where interviewers approach shoppers in malls to ask questions or conduct surveys about their behaviors or opinions.