Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Production Budget
A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budge…
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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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