Assume that the cap rate given in the offering memorandum is the correct rate to discount the net operating income given in the offering memorandum. Only use the first year NOI in your calculations ignore all increases. Also assume that after ten years the value of the property has not appreciated from its asking price. Based on these assumptions and the plan to sell the property after ten years, the asking price is less than the present value of the NOI for the next ten years plus the sale price of the property.