What is the estimated net operating income using the

Assignment Help Finance Basics
Reference no: EM13484693

You are considering purchasing an office building for $2,500,000. You expect the potential gross income (PGI) in the first year to be $450,000; vacancy and collection losses to be 9 percent of PGI; and operating expenses to be 42 percent of effective gross income (EGI). What is the estimated Net Operating Income? Using the selling price, what is the implied first year overall capitalization rate? What is the (effective) gross income multiplier?

Reference no: EM13484693

Questions Cloud

What is the basic shortcoming of most ratios and rules of : what is the basic shortcoming of most ratios and rules of thumb used in commercial real estate investment decision
Explain why income property cash flow is not the same as : explain why income property cash flow is not the same as taxable
The rate of exchange in effect at december 31 2011 was 59 : 1. fay had a realized foreign exchange loss of 15000 for the year ended december 31 2011 and must also determine
What is the primary thing that distinguishes an operating : what is the primary thing that distinguishes an operating expense from a capital
What is the estimated net operating income using the : you are considering purchasing an office building for 2500000. you expect the potential gross income pgi in the first
Prepare the statement of cash flows for the year ended : great adventures inc. income statement for the year ended december 31 2017nbsprevenuesnbspservice revenue clinic racing
Why might a commercial real estate investor borrow to help : why might a commercial real estate investor borrow to help finance an investment even if she could afford to pay 100
What is the overall capitalization rate what is the : you are considering the purchase of a quadruplex apartment. effective gross income egi during the first year of
What is the estimated overall cap rate ro using noi for the : what is the estimated overall cap rate ro using noi for the first year of

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain why it does not make sense to assess consistency

Explain why it does not make sense to assess the interitem consistency of this scale. "The index of consumer sentiment toward marketing described in the appendix is formative in nature"

  What is the net cash flow from the salvage value

Ronnie has been offered $52,000 for his old assets. What is the net cash flow from the salvage value if the tax rate is 34 percent?

  How much would the government have to set aside now

The lump sum the government sets aside will also be invested at 6%, annual compounding.

  What is the equivalent cash price of the corolla

What is the equivalent cash price of the Corolla if your only other option is 7.5% APR monthly using Bank financing, and Al's will not discount the $20,000 price?

  This paper is essentially an in-depth report in apa

this paper is essentially an in-depth report in apa manuscript format on research in motion the makers of blackberry.

  Calculate the profit or loss on bags

University Catering sells 50-pound bags of popcorn to university dormitories for $10 a bag. The fixed costs of this operation are $80,000, while variable costs of the popcorn are $.10 per pound.

  Find what is sales revenue under the worst case scenario

The sales price is estimated at $750 per unit, plus or minus 3 percent and find what is the sales revenue under the worst case scenario?

  What is the current market value of the firms debt

The bonds have an 3.4% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt?

  Primary responsibilities of a corporate financial staff

Discuss the primary responsibilities of a corporate financial staff.

  Explain the three different kinds of loan payment methods

describe the three different types of loan payment methods and discuss the advantages disadvantages and potential uses

  Determine the minimum value spend in promotion

Chester's Elite product Cell has an awareness of 72 percent. Chester's Cell product manager for the Elite segment is estimated to have more awareness for Cell than Andrews' Elite product Axe.

  What is the expected dollar dividend over next three years

A broker offers to sell you shares of Bay Area Healthcare which just paid a dividend of $2 per share. The dividend is expected to grow at a constant rate of 4% per year. The stock's required rate of return is 12%.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd