CFA Video: Income Approach in Real Estate Valuation

CFA Video: Income Approach in Real Estate Valuation

 

For more about NOI, please go to http://minute-class.com/finance/net-operating-income-noi/

 

Given the following table, what is the value of the estate using income approach?

 

Net operating income

23145

Depreciation

1344

Interest Expense

124

Tax rate

0.25

Market Cap Rate

0.11

Cost of Debt

0.08

Cost of Equity

0.12

 

 

Answer:

 

 

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