Answer:
$368,000
Explanation:
In order to appraise the property using the capitalization approach, we must first determine a net cash flow:
net cash flow = $48,000 - $3,600 - $15,000 = $29,400
Now we calculate the property value using the perpetuity formula:
property value = net cash flow / capitalization rate = $29,400 / 8% = $367,500 which we must round up to $368,000
A property is being appraised using the income capitalization approach. Annually, it has an estimated gross income of $48,000, vacancy and credit losses of $3,600, and operating expenses of $15,000. Using a capitalization rate of 8%, what is the property's value (rounded up to the nearest $1,000)?
Answer:
<em>OPTION (B) is correct.</em>
Explanation:
Because, already the interest has been improved, then also Cray gets to keep the refrigerator. The consumer in the ordinary course of business buy a good or a product which is free from a security interest even if the customer knows about the agreement which is made during the lending, that is known as security agreement.
Because in security agreement is a agreement which decides that who is lending, have to pay security interest.
