Question
A client asked the appraiser for a feasibility analysis based on equity return rates. One use provides an annual net operating income totaling $75,000.
A client asked the appraiser for a feasibility analysis based on equity return rates. One use provides an annual net operating income totaling $75,000. There will be a 7%, $800,000, 30-year mortgage paid monthly. The client must make $250,000 down payment and will hold the property for 20-year period. The client expects to sell the property for $458,400. What is the annual equity dividend rate?
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SOLUTION To calculate the annual equity dividend rate well need to use some financial calculations Heres the process 1 Calculate the annual net operating income NOI based on the given information Annu...Get Instant Access to Expert-Tailored Solutions
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Engineering Economy
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
15th edition
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