Question
10. Assume that we have a commercial real estate property whose projected 5-year cash flows are the following: Year -1: -$50 Year 0: -$100 Year
10. Assume that we have a commercial real estate property whose projected 5-year cash\ flows are the following:\ Year -1: -$50\ Year 0: -$100\ Year 1: $20\ Year 2: $25\ Year 3: $30\ Year 4: $35\ Year 5: $140\ Assuming a discount rate of 2%. Calculate the overall cap rate of the property.\ a. 13%\ b. 14%\ c. 20%\ d. 40%\ 11. Assume further that the first years annual debt service is $5. What is the Cash Throw Off\ (CTO)?\ a. -$55\ b. -$45\ c. $15\ d. $25\ 12. What is the cash-on-cash return?\ a. 10%\ b. 15%\ c. 17%\ d. 25%\ 13. Given that the prevalent market cap rate at current time is 10%, what is the development\ profit?\ a. $49\ b. $52\ c. $849\ d. $852
10. Assume that we have a commercial real estate property whose projected 5-year cash\ flows are the following:\ Year -1: -$50\ Year 0: -$100\ Year 1: $20\ Year 2: $25\ Year 3: $30\ Year 4: $35\ Year 5: $140\ Assuming a discount rate of 2%. Calculate the overall cap rate of the property.\ a. 13%\ b. 14%\ c. 20%\ d. 40%\ 11. Assume further that the first years annual debt service is $5. What is the Cash Throw Off\ (CTO)?\ a. -$55\ b. -$45\ c. $15\ d. $25\ 12. What is the cash-on-cash return?\ a. 10%\ b. 15%\ c. 17%\ d. 25%\ 13. Given that the prevalent market cap rate at current time is 10%, what is the development\ profit?\ a. $49\ b. $52\ c. $849\ d. $852
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Ultimate Guide To Frugal Living Save Money Plan Ahead Pay Off Debt And Live Well
Authors: Daisy Luther
1st Edition
1631586009, 978-1631586002
