Question
The income statement of a apartment building is: Rents $ 650,000 Operating expense 350,000 Interest expense 100,000 Net Income $ 200,000 Capitalization Rates are 6%
The income statement of a apartment building is:
Rents $ 650,000
Operating expense 350,000
Interest expense 100,000
Net Income $ 200,000
Capitalization Rates are 6%
Based upon capitalization rates what is the property value ?
Select one:
a. $4,166,667
b. $5,833,333
c. $3,333,333
d. $5,000,000
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Managerial Accounting
Authors: Susan V. Crosson, Belverd E. Needles
8th Edition
9780618777174, 618777180, 618777172, 978-0618777181
