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sveticcg [70]
3 years ago
5

A property consists of 8 office suites, 3 on the first floor and 5 on the second floor. The contract rents are as follows: 2 sui

tes at $1,800 per month, 1 at $3,600 per month and 5, at $1,560 per month. Annual market rent for all suites increase 3% per year after the first year. Vacancy and collection losses are estimated at 10% of potential gross rent per year. Operating expenses and reserve for replacement or capital expenditures are 45% of effective gross income each year. The expected holding period is 5 years. At the end of the holding period you are expecting to sell the property for $1,180,472.A. Prepare the first year pro forma generating the NOI for year 1.
Business
1 answer:
tangare [24]3 years ago
6 0

Answer:

$89,100

Explanation:

Let us first calculate annual gross rent for Year 1:

Total rent per month:

= 2 suites at $1,800 + 1 suites at $3,600 + 5 suites at $1,560

= $3,600 + $3,600 + $7,800

= $15,000

Annual gross rent = Total rent per month × 12

                              = $15,000 × 12

                              = $180,000

Effective gross revenue = Potential gross rent revenue - Vacancy and connection losses (10% of potential gross rent)

                                        = $180,000 - $18,000

                                        = $162,000

Net operating income = Effective gross revenue - Operating expenses including depreciation

                                      = $162,000 - $72,900

                                      = $89,100

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Answer:

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Explanation:

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One discount point is equivalent to 1% of the loan amount.

In the given scenario a down payment of 10% was made.

Also they are pay one discount point to close.

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2 years ago
You purchased 1,000 shares of the New Fund at a price of $20 per share at the beginning of the year. You paid a front-end load o
Mazyrski [523]

Answer:

6.37%

Explanation:

Rate of return

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Cost of shares =number of shares* price per share

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Total amount invested = Purchasing cost /(1- front-end load)

               = $20,000 / (1-0.04)

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Investment value after one year

           = Total Investment*( 1+ price increase-expense ratio)

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        $ 1,326.667 / $ 20,833.333

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My rate of return on the fund will be 6.37% if I sell the shares at the end of the year.

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Which factors decrease because of protectionism? competition job security domestic production goodwill with trade partners impor
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Protectionism<span> is the economic policy of restraining trade between states through certain methods. From the choices listed above, I think the correct answer is the third option. The factor that would </span>decrease because of protectionism is <span>goodwill with trade partners.</span>
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Answer: Nah just hanging out at home

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Using the percentage of receivables method for recording bad debt expense, estimated uncollectible accounts are $11,000. If the
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Answer:

Adjustment balance will be $13800

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