1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ugo [173]
3 years ago
9

You have been asked to estimate the market value of an apartment complex that is producing annual net operating income of $44,50

0. Four highly similar and competitive apartment properties within two blocks of the subject prop- erty have sold in the past three months. All four offer essen- tially the same amenities and services as the subject. All were open-market transactions with similar terms of sale. All were financed with 30-year fixed-rate mortgages using 70 percent debt and 30 percent equity. The sale prices and estimated first year net operating incomes were as follows:
Comparable 1: Sales price $500,000; NOI $55,000


Comparable 2: Sales price $420,000; NOI $50,400


Comparable 3: Sales price $475,000; NOI $53,400


Comparable 4: Sales price $600,000; NOI $69,000



What is the indicated value of the subject property using direct capitaliation?
Business
1 answer:
s2008m [1.1K]3 years ago
8 0

Answer: indicated value of the subject property using direct capitaliation is =   $390,351= $390,000

Explanation:The abstracted going-in capitalization rates from the four properties will be calculated using

The going-in cap rate which is  first-year net operating income (NOI) divided by the initial investment or purchase price

For Comparable 1:  55,000/ 500,000= 0.110

Comparable 2:   50,400/420,000= 0.120

Comparable 3: 53,400/ 475,000=0.112

Comparable 4:  69,000/600,000= 0.115

Calculate the Simple Ave. we have 0.110+0.120+0.112+0.115/4= 0.114

The simple average of the four comparable cap rates is 0.114. Therefore  the indicated value of the subject property is $390, 351 gotten from

($44,500 / 0.114) = $390,351= $390,000

You might be interested in
The objectives of cybersecurity are to accomplish each of the following except:_______ a. Make data and documents available and
irga5000 [103]

Answer:

C

Explanation:

Cybersecurity is the protection of internet-connected systems such as hardware, software and data from cyber-threats. It is used to prevent unauthorized access to data.

4 0
3 years ago
The City of Lawrence opens a solid waste landfill in 2017 that is at 54 percent of capacity on December 31, 2017. The city had i
Maurinko [17]

Answer:

Detailed solution is given below:

6 0
2 years ago
Use the following data to determine the total dollar amount of assets to be classified as current assets
borishaifa [10]

Answer:

the total dollar amount of assets to be classified as current assets is $220,000.

Note that the correct option is $220,000 based on the information provided in the question. However, this is not included in the option. Kindly confirm the correct options from your teacher.

Explanation:

Current assets can be described as a group of assets that are can be easily converted to cash within a year. Current assets are therefore assets which are expected to be used, sold or consumed in a normal business operations within a financial year.

Current assets is one of th component of a balance sheet and its components include cash, inventories, account receivables, advance payment (prepayments), and others.

For this question, the total dollar amount of assets to be classified as current assets can be determined as follows:

                  Carne Auto Supplies

    Current Assets Amount Determination

                  December 31, 2012

<u>Particulars                                      Amount ($)</u>

Cash                                                   60,000  

Prepaid Insurance                             40,000  

Accounts Receivable                        50,000  

Inventory                                           <u> 70,000  </u>

Total current assets                      <u> 220,000   </u>

Therefore, the total dollar amount of assets to be classified as current assets is $220,000.

6 0
3 years ago
In the 1970s, steve reich spent a month playing with and listening to drummers in
Andrew [12]
In Ghana. In the late spring 1970 Steve Reich went to Ghana to think about drumming. With a travel concede from the Special Projects division of the Institute of International Education, he advanced toward Accra keeping in mind the end goal to think about with Gideon Alorworye, the inhabitant ace drummer of the Ghana Dance Ensemble.
5 0
3 years ago
Martin Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no broker
Rashid [163]

Answer: $57,000,000

Explanation:

The employees purchased at a 20% discount which means that this 20% discount is the amount that would have to be covered by the company's pretax earnings:

= 19,000,000 * 15 * 0.2

= $57,000,000

<em>Martin's pretax earnings will be reduced by $57 million because the company would have to cover the discount on the shares. </em>

8 0
3 years ago
Other questions:
  • Steps in developing an email campaign include: borrowing an inexpensive email list. measuring the results of the campaign. findi
    6·1 answer
  • There are eight marketing reasons why a new product can fail: (1) no economic access to buyers;(2) incomplete market and product
    15·1 answer
  • The stock is currently selling for $15.25 per share, and its noncallable $1,000 par value, 20-year, 7.25% bonds with semiannual
    14·1 answer
  • Damian owns a pick-up truck and a motorcycle. He sells the motorcycle to Eden for $10,000. Eden pays for the cycle with a check,
    9·1 answer
  • The Baldwin Company currently has the following balances on their balance sheet: Total Assets $255,213 Total Liabilities $151,32
    11·1 answer
  • LG, a South Korean electronics company, has four divisions: Home Entertainment, Mobile Communications, Home Appliance &amp; Air
    15·1 answer
  • Why is it better to underestimate your income instead of overestimating when creating a budget?
    15·1 answer
  • The ability to capture and analyze all customer interactions, generate appropriate responses, and gather data to create and buil
    12·1 answer
  • If two identifiable markets differ with respect to their price elasticity of demand and resale is impossible, a firm with market
    12·1 answer
  • Developmental tasks: question 1 options: a) always involve children. b) occur at all stages of the life cycle. c) always impede
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!