Question
1.) A property's gross annual income is $100,000. The vacancy factor is 5 percent, the operating expense ratio is 35 percent, the interest expense is
1.) A property's gross annual income is $100,000. The vacancy factor is 5 percent, the operating expense ratio is 35 percent, the interest expense is $50,000 and the depreciation allowance is $10,000. At a 10 percent capitalization rate, what is the value of the property
a. $100,000
b. $600,000
c. $1000,000
d. $1,600,000
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An Inquiry Into The Nature And Causes Of The Wealth Of Nations
Authors: Adam Smith, R H Campbell
1st Edition
0865970068, 9780865970069
