Compute the Net Operating Income of the property and the value of the property from the following information:
i)Number of rooms in the apartment = 100
ii)Rent per apartment = INR 7,00,000 per month.
iii)Operating expenses, including property taxes, insurance, maintenance, and advertising are typical @ 35% of EGI (Effective Gross Income).
iv)Property management expenses are 15% of EGI.
v)Other incomes generated from parking are expected to be INR 30,000 per room per month.
vi)Currently 80 rooms have been rented.
vii)Expected return from the property = 10% p.a.