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charle [14.2K]
3 years ago
8

Property A is a self storage facility with a going cap rate of 6.0%. Property B is an office building with a going cap rate of 6

.0%. If both properties produce the same NOI, which property is worth more...?
Business
1 answer:
hjlf3 years ago
3 0

Answer:

Worth of both the property will be same.

Explanation:

Data provided in the question:

Cap rate for the Property A which is a self storage capacity = 6%

Cap rate for the Property B which is an office building = 6%

NOI of both the buildings are equal

Now,

Mathematically,

Cap rate is given as = [ NOI ] ÷ [ Worth of the property ]

or

Worth of the property =  [ NOI ] ÷ [ Cap rate ]

Since, the NOI and cap rate for both the buildings are same

Therefore,

Worth of both the property will be same.

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Answer:

the holding period return is 3.77%

Explanation:

The computation of the holding period return is shown below:

Holding period return is

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Hence, the holding period return is 3.77%

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

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2 years ago
Jose is an up and coming entrepreneur working on solidifying his business plans. After meeting with his mentor, he learns that h
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Answer:

This is important for Jose because as a business owner you want to know what type of business you are running

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4 0
2 years ago
Stephanie has a homeowners insurance policy for her $355,000 home with an annual premium of $0. 42 per $100 of value and a deduc
harkovskaia [24]

The annual premium that would result in Stephanie's annual out-of-pocket expense that is about the same as her current plan is <em>b. $0. 28 per $100 of value.</em>

Data and Calculations:

Home value = $355,000

Annual premium rate = $0.42 per $100

Deductible  $500

Total annual out-of-pocket expense = $1,991 ($355,000 x 0.0042 + $500)

New deductible = $1,000

New annual premium rate = $0.28

Total annual out-pocket expense based on the new premium rate = $1,994 ($355,000 x 0.0028 + $1,000)

Thus, the annual premium that would result in Stephanie's annual out-of-pocket expense that is about the same as her current plan is <em>Option b.</em>

Learn more: brainly.com/question/18618915

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Pizza Heaven is a small specialty pizza shop that just opened its doors in the downtown area this year. They serve only menu ite
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The answer is: B) concentrated/niche marketing

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3 years ago
What is one drawback shared by both monopolies and oligopolies?
garik1379 [7]

Answer:A.They can harm consumers by fixing prices.

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