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According to your interviews with hotel investors, equity yield rates are 14%. Year 6 NOI is expected to be 3% higher than year 5. Terminal capitalization rates are expected to be 13% at the time of the sale. Brokers charge 3% to the gross sales price to market the property you have also estimated the following NOI streams for the first five years of the property calculate the market value of the property using the income capitalization approach. Year 1    $875,000.00 Year 2    $901,000.00 Year 3    $928,000.00 Year 4    $956,000.00 Year 5    $985,000.00

According to your interviews with hotel investors, equity yield rates are 14%. Year 6 NOI is expected to be 3% higher than year 5. Terminal capitalization rates are expected to be 13% at the time of the sale. Brokers charge 3% to the gross sales price to market the property you have also estimated the following NOI streams for the first five years of the property calculate the market value of the property using the income capitalization approach. Year 1    $875,000.00 Year 2    $901,000.00 Year 3    $928,000.00 Year 4    $956,000.00 Year 5    $985,000.00

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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According to your interviews with hotel investors, equity yield rates are 14%. Year 6 NOI is expected to be 3% higher than year 5. Terminal capitalization rates are expected to be 13% at the time of the sale. Brokers charge 3% to the gross sales price to market the property you have also estimated the following NOI streams for the first five years of the property calculate the market value of the property using the income capitalization approach.

Year 1    $875,000.00

Year 2    $901,000.00

Year 3    $928,000.00

Year 4    $956,000.00

Year 5    $985,000.00

 

**Using excel

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