a property that produces $3,000 in net income per year was valued using a capatilization rate...
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property that produces $3,000 in net income per year was valued
using a capatilization rate...
The monthly income from a piece of commercial property is $1,200. Annual expenses are $3,000 for...
The monthly income from a piece of commercial property is $1,200. Annual expenses are $3,000 for upkeep of the property and $1,000 for property taxes. The property is surrounded by a security fence that cost $4,000 to install four years ago. Assume 52 weeks in a year and end-of-year cash flows. a. If i = 12% per year (the MARR) is an acceptable interest rate, how much could you afford to pay now for this property if it is estimated...
Student name: 1) Suppose that you are attempting to value an income-producing property using the direct...
Student name: 1) Suppose that you are attempting to value an income-producing property using the direct capitalization approach. Using data from comparable properties, you have determined the overall capitalization rate to be 7.5%. If the projected first-year net operating income (NOI) for the subject property is $135,500, what is the indicated value of the subject using direct capitalization? A) $150,555.56 B) $9,033,333.33 $1,806,666.67 D) $144,985.00 C) $180
The monthly income from a piece of commercial property is $1,200. Annual expenses are $3,000 for...
The monthly income from a piece of commercial property is $1,200. Annual expenses are $3,000 for upkeep of the property and $1,000 for property taxes. The property is surrounded by a security fence that cost $4,000 to install four years ago a. If i = 12% per year (the MARR) is an acceptable interest rate, how much could you afford to pay now for this property if it is estimated to have a resale value of $150,000 10 years from...
#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...
A) The capitalization rate, “cap rate” measures the annual net operating income of a commercial property...
A) The capitalization rate, “cap rate” measures the annual net operating income of a commercial property relative to its market value. True or False B) You are searching for a commercial property to buy in Brooklyn. You have narrowed your search down to three properties. Property (1) has a cap rate of 7, property (2) has a cap rate of 8, and (property (3) has a cap rate of 6. Property (3) must be the better choice because the cap...
solve the replacment The Cost Approach A 12-year-old industrial property is being valued using the cost...
solve the replacment
The Cost Approach A 12-year-old industrial property is being valued using the cost approach. The appraiser feels that it has an effective age of 15 years based on its current condition. For example, there are cracks in the foundation that are not feasible to repair (incurable physical depreciation). That is, it would cost more to try to repair these problems than the value that would be created in the property. The appraiser believes that it has a...
Name Real Estate Valuation Problems 1. If an investor has found a possible investment property with the net income...
Name Real Estate Valuation Problems 1. If an investor has found a possible investment property with the net income after all operating expenses but before capital recapture from a small apartment house is estimated to be $48,000 per year: How much would an investor be willing to pay for the property if first mortgages are available for 75% the purchase price at 5.5% interest and the investor's equity capital investment requires a 15% return. The remaining life of the buildings...
EXAMPLE 23 The Cost Approach A 12-year-old industrial property is being valued using the cost approach....
EXAMPLE 23 The Cost Approach A 12-year-old industrial property is being valued using the cost approach. The appraiser feels that it has an effective age of 15 years based on its current condition. For example, there are cracks in the foundation that are not feasible to repair incurable physical depreciation). That is, it would cost more to try to repair these problems than the value that would be created in the property. The appraiser believes that it has a 60-year...
Croft Corporation produces a single product. Last year, the company had a net operating income of...
Croft Corporation produces a single product. Last year, the company had a net operating income of $160,000 using absorption costing and $149,000 using variable costing. The fixed manufacturing overhead cost was $10 per unit. There were no beginning inventories. If 43,000 units were produced last year, then sales last year were: 0 32,000 units O 41,900 units 0 54,000 units 0 40,000 units
Roosevelt, Inc. produces the following income statement and balance sheet for the year. Net sales of...
Roosevelt, Inc. produces the following income statement and balance sheet for the year. Net sales of the firm are 3800million. Depreciation is 360million. Earnings before income and taxes is 1780million and net income is 832million. Interest expense is 500million. Current liabilities, long term debt and shareholder’s equity are 800, 2000 and 4000 million, respectively. The company has a tax rate of 35% and a cost of capital of 11.00%. What is the Economic value added (EVA)? a.)497million b.)625million c.)460million d.)350million
Student name: 1) Suppose that you are attempting to value an income-producing property using the direct capitalization approach. Using data from comparable properties, you have determined the overall capitalization rate to be 7.5%. If the projected first-year net operating income (NOI) for the subject property is $135,500, what is the indicated value of the subject using direct capitalization? A) $150,555.56 B) $9,033,333.33 $1,806,666.67 D) $144,985.00 C) $180
solve the replacment
The Cost Approach A 12-year-old industrial property is being valued using the cost approach. The appraiser feels that it has an effective age of 15 years based on its current condition. For example, there are cracks in the foundation that are not feasible to repair (incurable physical depreciation). That is, it would cost more to try to repair these problems than the value that would be created in the property. The appraiser believes that it has a...
Name Real Estate Valuation Problems 1. If an investor has found a possible investment property with the net income after all operating expenses but before capital recapture from a small apartment house is estimated to be $48,000 per year: How much would an investor be willing to pay for the property if first mortgages are available for 75% the purchase price at 5.5% interest and the investor's equity capital investment requires a 15% return. The remaining life of the buildings...
EXAMPLE 23 The Cost Approach A 12-year-old industrial property is being valued using the cost approach. The appraiser feels that it has an effective age of 15 years based on its current condition. For example, there are cracks in the foundation that are not feasible to repair incurable physical depreciation). That is, it would cost more to try to repair these problems than the value that would be created in the property. The appraiser believes that it has a 60-year...
Croft Corporation produces a single product. Last year, the company had a net operating income of $160,000 using absorption costing and $149,000 using variable costing. The fixed manufacturing overhead cost was $10 per unit. There were no beginning inventories. If 43,000 units were produced last year, then sales last year were: 0 32,000 units O 41,900 units 0 54,000 units 0 40,000 units
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