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You expect to receive the annual property Net Operating Income (NOI) from a certain property as follows: Year 1 $20,000 Year 2 $22,000 Year 3 $30,000 Year 4 $31,000 Year 5 $40,000 3) What is the Total Present Value of the property given the 5 year holding period?

User Sibel
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1 Answer

4 votes

Answer:

The answer is "353281.88".

Step-by-step explanation:

In this question, the total present value for cash flow was its notion which states the today's currency is worth more than tomorrow. In other terms, money received by tomorrow is not as large as today.

Using formula:

Total present value of cash inflow
= 104913.35+248368.53=353281.88

User Jamie Curtis
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