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:
d) economic and legal
Explanation:
As Juan is going to start a business by satisfying the unfulfilled needs of his community, it means definitely going to target a niche market, therefore chances of success are quite higher but as far as economic and legal factors are concerned, they surely either can increase the restrictions over him with the help of many possible laws and adding various taxes or can lower the risk of initiating a new venture by finding him a suitable financier who could finance his business effectively.
You need to be organized with the plan and have a summary of what you think of doing
The total overhead variance is the difference between actual overhead cost and overhead cost applied to work done is True
