A property produces a first year NOI of $100,000 which is expected to grow by 2% per year. If the property is expected to be sol
1 answer:
Answer:
the expected sale price based on a terminal capitalization rate is $1283152
Explanation:
The NOI (net operating income) is used in the estimation of the profitability in real estate investment.
The first year NOI of a property is $100000 and it is expected to grow by 2% (0.02) per year and to be sold in next ten years (n = 10 years).
r = 100% + 2% = 102% = 1.02
After ten years, the NOI = first year NOI × = $100000 × (1.02)¹⁰ = $121899.442
The terminal capitalization rate is 9.5%. Therefore the expected sale price based on a terminal capitalization rate = $121899.442 / 9.5% = $121899.442 / 0.095 = $1283152
the expected sale price based on a terminal capitalization rate is $1283152
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Answer:
The question is missing some figures which can be seen from the attached image.
Petty cash is a fund set aside in the office to pay minor day to day expenses incurred.Usually, an amount is made available at the beginning of period called float,from which expenses can be paid and the amount equal to spend is reimbursed at the end of the month.
In order, to make payment even more easier,some businesses take up credit cards from financial institutions,from which expenses can be paid on account.
The balance of $415 means in petty fund,implies that $85 spent needs to be replenished at month end and that the remaining expenses were paid with credit card.
Explanation:
Find in the attached spreadsheet the entries posted in respect of petty cash and credit card expenses in the month.
