Estimate the value of the property using the income approach based on the following facts: Net operating income annually for next 3 years is $400000 At end of three years, property is sold with an...

Estimate the value of the property using the income approach based on the following facts:

• Net operating income annually for next 3 years is $400000


• At end of three years, property is sold with an existing cap rate of 10% and a commission of 4% on sale


• The discount cap rate is the same as the existing cap rate and the operating income is assumed to be received at year end