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Sloan [31]
3 years ago
15

Suppose that you are attempting to value an income-producing property using the direct capitalization approach. Using data from

comparable properties, you have determined the overall capitalization rate to be 11.44%. If the projected first-year net operating income (NOI) for the subject property is $44,500, what is the indicated value of the subject using direct capitalization?
Business
1 answer:
Licemer1 [7]3 years ago
5 0

Answer:

Based on the calculation made, the indicated value is $3,889.86014

Explanation:

Using direct capitalization method, indicated value can be calculated using the formula below:

Value = Annual net operating income NOI/Capitalization rate  

         = $44500/11.44%

Value= $3,889.86014

Based on the calculation made above, the indicated value is $3,889.86014.

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3 years ago
What is the change due if a $5 bill is tendered for a charge of $4.21? The change in dollars and cents would be $ a0.
Yuri [45]

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Explanation:

Given that,

Tendered bill = $5

Bill charged = $4.21

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8 0
3 years ago
Ketchum &amp; Lushene Hardware sells 100 hammers daily. The supplier takes two days
Softa [21]

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He should reorder when he is left with 200 hammers.

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Reorder point is the trigger which informs the businessmen to order the inventory when the stock is used.

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8 0
3 years ago
Tommy bought 35 shares of stock at $45.75 per share. He received dividends of $82.45 during the year. At the end of the year, hi
gogolik [260]

Answer:

10.57%

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Return on investment is a profitability measure of gains realized from an investment. It is a ratio that shows how a business uses its resources to generate profits. Return on investment compares the net income against the initial investment.

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5 0
3 years ago
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