When analyzing a 6-year analysis, which year's NOI is used if the resale calculation is set to CAP NOI 12 months after sale?

In the context of a 6-year analysis with a resale calculation based on CAP NOI 12 months after the sale, the correct answer is the 7th year. This is because we consider the net operating income (NOI) that is relevant to the time of the sale.

When a property is sold at the end of the 6th year, the resale value is typically calculated based on the income it is expected to generate in the following 12 months, which extends into the 7th year. So, for the resale calculation, the NOI that is taken into account is not from the 6th year itself, but rather from the expected performance in the upcoming year (the 7th year). This captures the income the new owner is likely to receive immediately after the transaction, aligning with the assumptions of investment return and property valuation.

Other options would refer to either previous years' NOI or the current year's NOI, which is not aligned with the timing of the resale calculation in this scenario. Therefore, using the 7th year's NOI accurately reflects the projected financial performance following the sale.