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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%. Prepare a sensitivity analysis showing the cash-on-cash returns by changing the rental rate and operating expenses. 1. Prepare the analysis showing variations $1psf changes in both variable for two adjustments in each direction (increased or decreased
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