Answer:
The estimate value of the subject property is $8,269,200
The other information that would be desirable in reaching a conclusion:
The closeness of the property to central business districts as the closer it is the higher the asking price.
The estimate was solely based on revenue, the applicable costs have been ignored.
The average taken might not be a good indication for the subject property because the property might have unique features
Explanation:
The formula for Gross Rent Multiplier is given Property Price / Gross Monthly Rental Income.
In determining the estimate value of the subject property ,we calculate the gross rent multiplier of the new property,then multiply it with the annual rental income.
In ascertaining the GRM of the new property we take the average GRM of the two similar properties in the same area.This is because the new property judging from number of units, lies in-between the other two properties.
GRM for Oaks
GRM=$9000000/($550*140)
GRM =116.88
GRM for Palms
GRM=$6,600,000/($650*90)
GRM =112.82
The average GRM=(116.88+112.82)/2
=114.85
Subject property price=114.85*(120*$600)
=$8,269,200
- Make sure you know what your investing in (DYOR)
- Invest only money your willing to lose
- Learn from others and learn strategies
Answer:
1.875 years
Explanation:
Payback period is a capital appraisal technique that allows to identify the time it takes to recover initial outlay of a project.
The Payback period for this period can be computed as,
Initial outlay = $1,500,000
First Subtract the first year cash flow to find residual out lay,
Year 0 = (1,500,000)
Year 1 = 800,000 Residual Outlay = (1500,000-800,000) = $700,000
Since year 2 cash flows are more than residual outlay, the payback period is,
Payback Period = 1 + (700,000/800,000) = 1.875 years
here "1" refers to year 1.
Hope that helps.
Answer:
A. current liabilities
Explanation:
notes payable are for a period of 90 days which falls under the definition of current liabilities and not for any other given option. current liabilities are those liabilities which are maximum up to 12 months of period. so we should answer A. current liabilities
