Answered step by step
Verified Expert Solution
Question
1 Approved Answer
how to solve those two problems, kindly I want it to be sloved in written not using excel or financial calculator if its possible 16.
how to solve those two problems, kindly I want it to be sloved in written not using excel or financial calculator if its possible
16. A property is sold for $200,000. Typical financing terms are an 85% loan with a 10% interest rate over 15 years. If the before-tax cash flow is $2,000, what is the overall capitalization rate? (B) (A) 10.96% (B) 11.96% (C) 19.13% (D) 9.96% 17. A property produces a first-year net operating income of $24,000. Because of the long economic life of the building, the income is considered as a perpetuity that will grow by 2.5% per year. Using a discount rate of 9.5%, the property value is estimated at (D) (A) $276,968 (B) $252,632 (C) $200,000 (D) $342,857
how to solve those two problems, kindly I want it to be sloved in written not using excel or financial calculator if its possible
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