Questions about Exit Cap Rate, NPV and UFCF
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I know the formula [Terminal Cap Rate = Expected Net Operating Income / Expected Sale Price], but I am considering if I should use the expected NOI in the year of sale or in the following year (assumed stabilized year) after the year of sale.
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When calculating the NPV of Cash Flows, I hope to know if I should use the Excel function [=NPV(Discount Rate, Sum of Cash Flows from both Historical Year and Operating Years] or [=NPV(Discount Rate, Sum of Cash Flows from the Operating Years] + Cash Flows from the Historical Year].
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I wonder if if Adjusted NOI is Unleveraged Cash Flow, why or why not?
Thank you very much!!!