A Property Produces a First Year NOI of $100,000 Which

question 15

Multiple Choice

A property produces a first year NOI of $100,000 which is expected to grow by 2% per year.If the property is expected to be sold in year 10,what is the expected sale price based on a terminal capitalization rate of 9.5% applied to the eleventh year NOI?

• A)$1,308,815
• B)$1,283,152
• C)$1,263,158
• D)$1,257,992