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
ALL BUT which of the following generally assume a stabilized net operating income (NOI)? A. Investment...
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.
18. When the Net Present Value (NPV) of an investment is zero, which of the following statements is true: a. The required rate of return has not been achieved b. The discount rate is the rate of return achieved in the investment c. The investment is achieving a nil return d. Cashflows are insufficient to meet investment objectives e. None of the above are correct 19. A property has an annual gross income of $120,000, unrecoverable operating expenses of $18,000...
Which of the following income capitalization techniques is based on the principle that buyers will not pay more for a property than the present value (PV) of all future Net Operating Incomes (NOI)? A. Multiple Choice Direct capitalization method B. Effective gross income method C. Potential gross income method D. Discounted cash flow method
9. Given the following: Net operating income - $35,000; Turnover = 2; Return on investment -14%. What are “Sales"?_ 10. Given the following: Sales = $700,000; Net operating income - $56,000; Return on investment - 20%. What is "Turnover? average operating assets are $500,000. What is the minimum required rate of retur? a. 10% b. 14% c. 16%. d. 20% c. 24%. Use the following information to answer questions 12 - 13: Selected sales and operating data for Division A...
Assume a firms net income is equal to $600,000. If all revenue and operating expenses were paid in cash what would be the firms operating cash flow for the year if the firm paid a dividend of $200,000 and depreciation of $147,735? a) 100,000 b) 480,000 c) 540,000 d) 700,000 e) None of the above
Which of the following are typical adjustments made to calculate stabilized or market driven net operating income (NOI)? 1. Adjust for an asset management fee specific to the owner/operator 2. Adjust for leases that may expire 24 months from now. 3. Adjust for leases that expired four months ago 4. Adjust for decreases in operating expenses that may occur in 36 months. 1 and 2 1 and 3 2 and 3 3 and 4
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
10 pts Question 6 Assume that the expected net operating income (NOI) on a property in year i is $250,000. If the annual rent increase (escalation) is 5.5%, what is expected NOI in year 6? $319,070 $326,740 $344,711 $368,526 $350,977
need all answers need all 1-4 Which of the following is irrelevant to capital investment analysis? a. Investment costs b. Net cash flows c. Carrying value d. Residual value QUESTION 2 Which of the following items can be described as a noncash expense? a. Wages b. Income taxes c. Depreciation d. Advertising QUESTION 3 When giving consideration to long-range investment decisions, which of the following best describes the time value of money: O a weighting cash flows with subjective probabilities...
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