Determine the net sale proceeds the current owner

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Analysis of a subject property's pro forma reveals that its fifth-year net operating income (NOI) is projected to be $200,282 (you can assume that this cash flow occurs at the end of the year). If you estimate the projected rental growth rate for the property to be 4% per year and the going-out capitalization rate in year 5 to be 11%, determine the net sale proceeds the current owner of the property would receive if he were to sell the property at the end of year 5 and incur selling expenses that amounted to $58,300.

Reference no: EM132396753

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