Question
An office building is rented at $27psf, gross with operating expenses at $11psf. Net income therefore is $16psf. If the purchase price is $260psf the
An office building is rented at $27psf, gross with operating expenses at $11psf. Net income therefore is $16psf. If the purchase price is $260psf the going in cash-on-cash return is 6.5%. Show a sensitivity analysis showing the cash-on-cash returns by changing the rental rate and operating expenses.
Prepare the analysis showing variations $1psf changes in both variable for two adjustments in each direction (increased or decreased).
Step by Step Solution
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Step: 1
To perform the sensitivity analysis and calculate the cashoncash returns for different variations in rental rate and operating expenses well use the g...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
