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| Expected NOI in year 6 = Expected NOI in year 1 * ( 1 + 5.5% )^5 = 250000 * ( 1 + 5.5% )^5 | 326740 |
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10 pts Question 6 Assume that the expected net operating income (NOI) on a property in...
D Question 6 10 pts Assume that the expected net operating income (NOI) on a property...
D Question 6 10 pts Assume that the expected net operating income (NOI) on a property in year 1 is $275,000. If the annual rent increase (escalation) is 5%, what expected NOI in year 6? $319,070 $326,740 $344,711 $368,526 $350,977 10 pts D Question 7 - MacBook Pro
In real estate net operating income (NOI) from a property is often divided by the cap...
In real estate net operating income (NOI) from a property is often divided by the cap rate to determine value. If we have a cash inflow (NOI) of $350,000 in year 1 and a cap rate of 6%, what is this stream of cash flows worth? Assume the cash flow continues each year to infinity. $1,800,342 $3,107,864 $5,833,333 $6,994,826 $8,478,243 Please help urgently.
8. A property has Net Operating Income (NOI) of $130,000 and is offered for sale at...
8. A property has Net Operating Income (NOI) of $130,000 and is offered for sale at $1,950,000. What Capitalization Rate did the seller use to price the property? Capitalization Rate: 130000/1950000=0.06667=6.67% 9. You have a Required Return of 7.66%. What would you offer for the property in the previous question?
Using the following information, determine the net operating income (NOI) for the first year of operations...
Using the following information, determine the net operating income (NOI) for the first year of operations of the subject property using "above-line" treatment of capital expenditures. Number of units:30 Market rent per unit per month: $1,000 Miscelaneous Income per year: $5,000 V&C Loss: 10% of PGI Operating Expenses: 20% of EGI CAPX: 10% of EGI $229.000 $245,800 5230.300 $302.500
32. Using the following information, determine the net operating income (NOI) for the first year of...
32. Using the following information, determine the net operating income (NOI) for the first year of operations of the subject property assuming "below-line" treatment of capital expenditures. 15 1000 Subject Property Number of apartments Market Rent (per month) Vacancy and Collection Losses Operating Expenses Capital Expenditures 10% of PGI 5% of EGI 10% of EGI A. $135,000 B. $137,700 C. $153,900 D.$162,000
5. Kimberly has a retail clothing store that makes a net operating income (NOI) of $300,000....
5. Kimberly has a retail clothing store that makes a net operating income (NOI) of $300,000. She originally purchased the property for $2,500,000 and places $500 a month into escrow for replacement reserves. She estimates the land value to be $400,000. She received a mortgage for $1,625,000. The payments each month include principal and interest during year 2 of $45,909 and $88,229 and during year 1 of $56,843 and $99,651 respectively. What is the depreciation for year 1 and 2?...
#1 MULTIPLE CHOICE (no need to show work but please get right) 1. A property has a net operating income of $25,000 and the capitalization rate used in the market is 10%. What is the indicated value? a...
#1 MULTIPLE CHOICE (no need to show work but please get right) 1. A property has a net operating income of $25,000 and the capitalization rate used in the market is 10%. What is the indicated value? a) $250,000 b) $300,000 c) $325,000 d) $2,500,000 2. A property sold for $555,000. The buyer anticipated that the potential gross income (PGI) would be $93,000, the vacancy would be 5%, and expenses would be 35% of the effective gross income (EGI) in...
ALL BUT which of the following generally assume a stabilized net operating income (NOI)? A. Investment...
ALL BUT which of the following generally assume a stabilized net operating income (NOI)? A. Investment value approach B. Ellwood Formulation C. Rate of return approach D. Discounted cash flow E. All of the above
10 Last year, our company's net operating income (NOI) was $3,700,000. Our Degree of Operating Leverage...
10 Last year, our company's net operating income (NOI) was $3,700,000. Our Degree of Operating Leverage (DOL) was 1.80. One of our major customers went out of business, and we expect our sales to decrease by 50.0%. Assuming the same cost structure, our DOL in the current year if sales decrease by 50.0% from last year is closest to 9.0 1.8 3.6 0.9 18.0
QUESTION 6 Assume a REIT has an annual NOI of $10OM. Net debt equals $700M. The...
QUESTION 6 Assume a REIT has an annual NOI of $10OM. Net debt equals $700M. The company has 90M shares outstanding, If the stock trades at $6 per share, and the stock price is equal to the value of NAV per share, what is the implied cap rate? 8.07% 8.0% 8.7% 7.5%
D Question 6 10 pts Assume that the expected net operating income (NOI) on a property in year 1 is $275,000. If the annual rent increase (escalation) is 5%, what expected NOI in year 6? $319,070 $326,740 $344,711 $368,526 $350,977 10 pts D Question 7 - MacBook Pro
Using the following information, determine the net operating income (NOI) for the first year of operations of the subject property using "above-line" treatment of capital expenditures. Number of units:30 Market rent per unit per month: $1,000 Miscelaneous Income per year: $5,000 V&C Loss: 10% of PGI Operating Expenses: 20% of EGI CAPX: 10% of EGI $229.000 $245,800 5230.300 $302.500
32. Using the following information, determine the net operating income (NOI) for the first year of operations of the subject property assuming "below-line" treatment of capital expenditures. 15 1000 Subject Property Number of apartments Market Rent (per month) Vacancy and Collection Losses Operating Expenses Capital Expenditures 10% of PGI 5% of EGI 10% of EGI A. $135,000 B. $137,700 C. $153,900 D.$162,000
5. Kimberly has a retail clothing store that makes a net operating income (NOI) of $300,000. She originally purchased the property for $2,500,000 and places $500 a month into escrow for replacement reserves. She estimates the land value to be $400,000. She received a mortgage for $1,625,000. The payments each month include principal and interest during year 2 of $45,909 and $88,229 and during year 1 of $56,843 and $99,651 respectively. What is the depreciation for year 1 and 2?...
10 Last year, our company's net operating income (NOI) was $3,700,000. Our Degree of Operating Leverage (DOL) was 1.80. One of our major customers went out of business, and we expect our sales to decrease by 50.0%. Assuming the same cost structure, our DOL in the current year if sales decrease by 50.0% from last year is closest to 9.0 1.8 3.6 0.9 18.0
QUESTION 6 Assume a REIT has an annual NOI of $10OM. Net debt equals $700M. The company has 90M shares outstanding, If the stock trades at $6 per share, and the stock price is equal to the value of NAV per share, what is the implied cap rate? 8.07% 8.0% 8.7% 7.5%
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