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Helen [10]
3 years ago
10

A method of estimating land value in which the net operating income attributable to the land is isolated and capitalized to prod

uce an indication of the land's contribution to the total property is the definition of the ____________ Method of site valuation.
Business
1 answer:
igomit [66]3 years ago
4 0

Answer: Land Residual Method

Explanation:

Land residual method of site evaluation is the method of estimating land value in which the net operating income attributable to the land is isolated and capitalized to produce an indication of the land's contribution to the total property.

This particular method uses income as being the basis for value and is used in appraising income producing properties.

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The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, "This is a
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Answer:

IRR = 13.05%

Explanation:

using an excel spreadsheet, the cash flows are:

year 0 = -$3,200,000

year 1 = $425,000

year 2 = $425,000 x 1.08 = $459,000

year 3 = $459,000  x 1.08 = $495,720

year 4 = $535,378

year 5 = $578,208

year 6 = $624,464

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year 8 = $728,375

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year 10 = $849,577

year 11 = ($849,577  x 1.08) - $480,000 = $917,543 - $480,000 = $437,543  

IRR = 13.05%

The internal rate of return (IRR) is the discount rate at which a project's NPV (net present value) would equal $0.

6 0
3 years ago
Silway travels organizes tours to a number of cities in illinois. the manager of the company examines a spreadsheet which is an
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The answer to the blank space is data.

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