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:

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The process of defining how work will be performed and what tasks will be required in a given job to achieve efficiency, quality, and satisfaction for both the organization and the employee.

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The process of broadening the scope of tasks and responsibilities of a particular job to make it more engaging and less monotonous for the employee.