A class "C" hotel in Ghosttown is for sale. Based on its average daily rates...
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A class "C" hotel in Ghosttown is for sale. Based on its average daily rates and operating and other expenses projections, it is estimated that next year it will produce $109,000 in net operating income. This income is then expected to grow by 7% per year indefinitely. An out-of-town investor is considering buying the property and selling it 10 years from today. Investor's required return is 13%. Calculate the estimated resale price.
Increase the decimal place to 6 or even higher for any intermediate calculations, or do the problem in Excel, if you can.
Round your answer to TWO decimal places, for example, 1,000.23
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