So I multiple 157,462.5 x 0.0969 to get an expense of $15,251.12? Which $157,462.5 - $15,251.12 equals an NOI of $142,204.38?You need to tell us what the net income stream is for the five years. Then we will capitalize it for you. Be sure and show your work.
I used the 6-Function Compound Table because my fingers are two fat for calculators.
You are appraising a single tenant retail building, 13,000 square feet of gross leasable area. Market rents in the areaYou need to tell us what the net income stream is for the five years. Then we will capitalize it for you. Be sure and show your work.
I used the 6-Function Compound Table because my fingers are two fat for calculators.
I am only using the numbers in the math problem I can not just make numbers up even though the number may not make sense I still have to only use the number presented to me an solve the problem from the number give to me.Nope. Grasshopper, you have a income stream for 5 years which will be discounted at 9%. So its going to be less than 5 and probably more than 3. (9% is a heavy cap rate or discount rate).
And you get a $2 million after five years, so you need to know what the value of that $2 million is today, or PW of 1, 5 years, again at a heavy discount of 9%. So it will be less than 1, but probably more than 0.5.
Your on the right track, up to EGI. Close to being able to send an invoice.
The value of $2,100,000 today would be $1,341,269.37. Based on CHS -$2,100,000 FV, PMT = 15,258.12, i =9 and n =5 which gives me a present value for reversions of $1,305,507.15 for reversions and a present value of $1,364,855.91. CHS -2,100,000 FV, PMT = $15,258.12, i=9 and n=5 which gives me a present value of $1,364,855.91.Nope. Grasshopper, you have a income stream for 5 years which will be discounted at 9%. So its going to be less than 5 and probably more than 3. (9% is a heavy cap rate or discount rate).
And you get a $2 million after five years, so you need to know what the value of that $2 million is today, or PW of 1, 5 years, again at a heavy discount of 9%. So it will be less than 1, but probably more than 0.5.
Your on the right track, up to EGI. Close to being able to send an invoice.
Okay, that makes logical sense.I'm thinking the 5% expense is just a 5% expense.
Maybe this will help,
You are appraising a single tenant retail building, 13,000 square feet of gross leasable area. Market rents in the areaI'm thinking the 5% expense is just a 5% expense.
Maybe this will help,
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