Suppoe that examining a pro forma reveal that the fifth-year net operating income (NOI) for the ubject property you are analyzing i $218,300. The projected firt-year net operating income (NOI) i $247,000. Uing data from comparable propertie, you have determined the overall capitalization rate to be 6. 00%, and the going-out cap rate to be 22. 0%. If, what i the indicated value of the ubject uing direct capitalization?
