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A property is leased for $24,000 per year although market rents are currently $27,500 per year and are expected to

increase by 2% per year. The property is expected to be sold at the end of year 10 based on a 10% terminal cap rate applied to the eleventh year NOI. The current lease on the property will expire at the end of year 10 so the property can be leased in the eleventh 

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The present value of the... View the full answer

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