NOI: Current or next year?

CFA Level II Alternative Investments
#1

I think this is a similar issue than the one I’ve been seeing regarding the use of E0 or E1 when calculating PVGO…

Do we use current NOI or next-year NOI when calculating V for a real estate? I’ve seen both and I am not sure about which one we should take…

Cheers

#2

Next one makes more sense to me. I’ll search for hints if its asking me to use NOI 0 but otherwise it’s NOI 1 for me

#3

I think if we assume no growth, then we can use E0 or E1

#4

E1 for PVGO for sure. Usually no growth for NOI so E0 or E1 is acceptable.

#5

Next year for sure.

You are mistaken if you see both. This happened to me when I was doing a few questions. Sometimes they’ll give you current NOI and sometimes they say ESTIMATED NOI. Or you could be given an exhibit for 2016 data when they ask you to calculate it as of 2015.