1. Calculate the Value of an asset, assuming the NOI is $140,000 per year for 12 years with the first cash flow at the end of year 1. The value of the asset will increase by 80% over the 12 years. The discount rate is 14%. (hint: V= (PV of PMTS) + {(1+increase in value)/(1+discount rate)^N } times V.)
A. $1,063,438 B. $1,196,421 C. $1,265,085 D. $1,488,866
2. which of the following describes what is typically contained in a conditional sales contract.
a) seller retains legal ownership until the buyer has made all of the payment
b) an agreement made between a buyer and a seller regarding the purchase of an asset
c) down payment is usually about 1/3 of asset value
d) all of the above