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3. You are about to purchase a property that you anticipate will produce $125,000 per...

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3. You are about to purchase a property that you anticipate will produce $125,000 per year in NOI each year. You anticipate selling in year 11 to a buyer that will pay $1,512,843, but you would incur 5% in expense when you sell the property. What do you estimate is the current market value of the property today using the DCF method and assuming a 8% discount rate? Year NOI Net Sale Proceeds Total Cash Flow 1 2 3 4 5 07 7 00 9 10 11 NPV=

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