Consider the table of projected NOI cash flows for a commercial real estate asset below. Year 1 Year 2 Year 3 Year 4 Year 5 $ 150,000 $ 157,500 $ 165,375 $ 173,644 $ 182,326 If the building is sold at the end of Year 3 at a 7.25% going-out cap rate, and 4.50% in selling expenses are incurred, what is the total cash flow (TCF) in year 3?

Consider the table of projected NOI cash flows for a commercial real estate asset below. Year 1 Year 2 Year 3 Year 4 Year 5 $ 150,000 $ 157,500 $ 165,375 $ 173,644 $ 182,326 If the building is sold at the end of Year 3 at a 7.25% going-out cap rate, and 4.50% in selling expenses are incurred, what is the total cash flow (TCF) in year 3?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...

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