Net Present value for an investment
Hello, I am buying a building that has a market cap rate of 5.2 %. Does anybody know what would be the adequate discount rate for net present value calculation. The building is at the beginning of prospect heights right next to flatbush and 7th avenue.
Hello,
I am buying a building that has a market cap rate of 5.2 %.
Does anybody know what would be the adequate discount rate for net present value calculation.
The building is at the beginning of prospect heights right next to flatbush and 7th avenue.
thank you but that did not help me. i went on the website and could not find any explaination.
To calculate the adequate discount rate,you can use the formula of Hurdle Rate or Incremental Cost of Capital.
http://www.massloanmodificationcenter.com