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Section B (2 Mark)You are estimating the value of a small office building.

Section B (2 Mark)

You are estimating the value of a small office building. Suppose the estimated NOI for the first year of operations is Rs100,000. a. If you expect that NOI will remain constant at Rs100,000 over the next 50 years and that the office building will have no value at the end of 50 years, what is the present value of the building assuming a 12.2% discount rate?

A.

Rs 8,17,078

B.

Rs 7,56,125

C.

Rs 8,95,154

D.

Rs 9,51,254

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