The following questions are based on the series of the following cash flows. You plan to sell the
property in year 5. The buyer anticipates buying the property for $3,000,000 and selling the
property for $3,500,000. The NOI for each year is noted.
Please put your answer in percentage with two decimal places for instance put 7.63 for 7.63%.
Please put dollar amounts with two decimal places as well. Please enter a positive value. All
questions should be completed in excel. Rounding will result in an incorrect answer.
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
NOI
250,000 258,000 266,000 274,000 282,000 290,000 300,000
Property
Transactions
(3,000,000)
3,500,000
4. If you decided to sell the building at the end of year 3 with an expected cap rate of 8%. What is
the reversion value? (Sale price before fees)