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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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?
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Transcribed Image Text: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?
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