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LenaWriter [7]
3 years ago
10

A building is valued at $215,000 and contains four apartments that rent for $470 each per month. The owner estimates that the ne

t operating income is 65% of the gross rental receipts. What is the capitalization rate?
Business
1 answer:
valentinak56 [21]3 years ago
5 0

Answer:

Capitalization rate is 3.67%

Explanation:

The capitalization rate is the rate of return expected from a commercial property. In order to find the capitalization rate we divide the net operating income of the building by its current value. The value of the building is 215,000. The revenue from the building is 22,560 (470*4*12), We get this by multiplying the monthly rent of each apartment by 4 as their are 4 apartments and then multiplying that by 12 as we need the yearly revenue. The costs are 65% of gross rental receipts so costs = 0.65*22,560= 14,664

The annual operating income is 22,560-14,664= 7,896

The capitalization rate is annual operating income/Current value of property so

7,896/215,000= 3.67%

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3 years ago
The strength of the economy of singapore is based largely on its lack of corruption and generous government support for new busi
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Singapore really has only two neighbors:

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It is politically correct to state that Malaysia and Singapore have a love-hate relationship. Malaysia's political leadership look down on Singapore.

<h3>How can Singapore be described?</h3>

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Despite having lived there for centuries, a Chinese or Indian is considered a "pendatang," or an immigrant, and is discriminated against.

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8 0
2 years ago
Simone is a 26-year-old who lost her job as a copy editor for a local newspaper. She has spent the past few weeks out of work an
AlekseyPX

Answer:

Simone will be considered unemployed.

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5 0
3 years ago
A city government uses eminent domain to seize property for a new public high school complex. Which of the following statements
Evgesh-ka [11]

Answer:hi

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3 years ago
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frutty [35]

Answer:

Production for the third quarter   159,500

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Desired ending inventory    4,600

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