Help with DCF and Cap Rate Problem

[12chp]

Trying to figure out how to solve the following with an HP12c:

The subject is under a 10-year lease. What is the present value of the leased-fee interest?

NOI: $24,000 in the first year; increasing @ $1,000/year
Projection period: 5-years
Property value increasing @ 3%/year
Yield rate: 10%

Any help would be greatly appreciated

[rprosperi]

(03-19-2018 04:10 PM)12chp Wrote:  Trying to figure out how to solve the following:

The subject is under a 10-year lease. What is the present value of the leased-fee interest?

NOI: $24,000 in the first year; increasing @ $1,000/year
Projection period: 5-years
Property value increasing @ 3%/year
Yield rate: 10%

Any help would be greatly appreciated

Seems like you're trying to get someone here to do your homework.

Otherwise, you likely may have mentioned which calculator you want help with.

[brickviking]

(03-19-2018 07:34 PM)rprosperi Wrote:  

(03-19-2018 04:10 PM)12chp Wrote:  Trying to figure out how to solve the following:

The subject is under a 10-year lease. What is the present value of the leased-fee interest?

NOI: $24,000 in the first year; increasing @ $1,000/year
Projection period: 5-years
Property value increasing @ 3%/year
Yield rate: 10%

Any help would be greatly appreciated

Seems like you're trying to get someone here to do your homework.

Otherwise, you likely may have mentioned which calculator you want help with.

I'd imagine that the 12c he wants help with might have something in that famous HP manual.

Unfortunately for me, the OP doesn't state what year of the lease he's looking at. That was the first thing that stuck out, but then as I've never done financial stuff beyond school (and that was Eton Statistical Table days) I don't have the knowledge to approach this problem with a solution.

(Post 191)