Calculate the net operating income

Assignment Help Finance Basics

Reference no: EM131923036

Question: In the coming year, the Sandbergs expect a potential rental property investment costing $120,000 to have gross potential rental income of $20,237, vacancy and collection losses equaling 4% of gross income, and operating expenses of $9,599. The mortgage on the property is expected to require annual payments of $8,513. The interest portion of the mortgage payments and the depreciation are given below for each of the next 3 years. The Sandbergs are in the? 25% marginal tax bracket.

Year	Interest	Depreciation
1	$8,313	$4,209
2	8,213	4,209
3	8,113	4,209

The net operating income is expected to increase by 6% each year beyond the first year.

a. Calculate the net operating income (NOI) for each of the next 3 years.

b. Calculate the after-tax cash flow (ATCF) for each of the next 3 years.

Reference no: EM131923036

Questions Cloud

How insulin affects the rate of hepatic gluconeogenesis : Explain how insulin affects the rate of hepatic gluconeogenesis by way of its indirect effect on the transcription factor FOXO1.

Bi-functional enzyme and simultaneously : Explain how in a post-prandial state, glucagon indirectly contributes to hepatic gluconeogenesis via CREB and the bi-functional enzyme and simultaneously

Determine who your stakeholders and project team members : You will need to determine who your stakeholders and project team members are for this project.

What assumptions candidates must making in order to justify : Restate these candidates' positions in economic terminology and explain what assumptions they must be making in order to justify their different positions.

Calculate the net operating income : In the coming year, the Sandbergs expect a potential rental property investment costing? $120,000 to have gross potential rental income of $20,237

Different ways that triacylglycerols hydrolyzed : Identify and explain 3 different ways that triacylglycerols hydrolyzed in the adipocytes via lipolysis can contribute to hepatic

What volume of a 0193 m calcium hydroxide solution : What volume of a 0.193 M calcium hydroxide solution is required to neutralize 11.4 mL of a 0.330 M hydrochloric acid solution?

Determine which is which based on the structures below : Consider the following two molecules. One of the molecules is butter, the other is olive oil. Determine which is which based on the structures below.

What extent you think a tax on cigarettes would fulfill : create negative externalities through secondhand smoke. Explain to what extent you think a tax on cigarettes would fulfill each of the goals of taxation.

User Account

All Pages