Solution-Review problem related to an apartment complex

Review problem related to an apartment complex

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Reference no: EM131734332

Question: An apartment complex has 1,000 units of which on average 100 are vacant at any given time. Per unit, the rent is $400 per month, and the operating expenses are $1,800 per year (per occupied unit). If you expect both rents and expenses to grow at 3% per year, the required return is 12.5%, and the building value is expected to remain a constant multiple of its net income, then what is the NPV of a deal to buy the property for $25 million?

Reference no: EM131734332

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Review problem related to an apartment complex : An apartment complex has 1,000 units of which on average 100 are vacant at any given time. Per unit, the rent is $400 per month, and the operating expenses.

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Review problem related to an apartment complex

Reference no: EM131734332

Reference no: EM131734332

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