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Business, 13.11.2019 20:31 emilybabydog

Ace investment company is considering the purchase of the apartment arms project. next year’s noi and cash flow is expected to be $ 2,000,000, and based on ace’s economic forecast, market supply and demand and vacancy levels appear to be in balance. as a result, noi should increase at 4 percent each year for the foreseeable future. ace believes that it should earn at least a 13 percent return on its investment.
a. assuming the above facts, what would the estimated value for the property be now?
b. what " going- in" cap rates should be indicated from recently sold properties that are comparable to apartment arms?
c. assuming that in part ( a) the required return changes to 12 percent, what would the value be now?
d. assume results in part ( c). what should the investor now be observing regarding the price of " comparable" sales? what market forces may be accounting for the differences in value between ( a) and ( c)?

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Ace investment company is considering the purchase of the apartment arms project. next year’s noi an...
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