A property sold for $4.9 million, which equated to a 6.95% cap rate on the estimated first year NOI. What is the expected NOI for the property?
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A property sold for $4.9 million, which equated to a 6.95% cap rate on the estimated first year NOI. What is the expected NOI for the property?
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- If an asset declines in value from 5,000 to 3,500 over nine years, what is the mean annual growth rate in the assets value over these nine years?A company expects the cost of equipment maintenance to be $5,000 in year one, $5,500 in year two, and amounts increasing by $500 per year through year 15. At an interest rate of 0.06 per year, the present worth of the maintenance cost is nearest to?A lot purchased for $4,500 is held for five years and sold for $13,500. The average annual property tax is $45 and may be accounted for at an interest rate of 12%. The income tax rate on the long term capital gain is 15% of the gain. What is the rate of return on the investment if the allowance for inflation is treated at an average annual rate of 7%?
- The maintenance for a piece of equipment costs P16,875 at the end of year one and increases by 12.357% every year for 6 years. If the interest rate is 8.657% compounded annually, what is the equivalent annual cost of the maintenance?For the same property with net operating cash flows of $15,000, $16,000, $20,000, $22,000, and $17,000 as well as a sale price of $200,000 at the end of the fifth year, what is the IRR if the investor pays $170,000? Answer as a percentage out to 2 decimal places.An engineering project has an investment amount of $126585 with an annual net profit of $53362 for 7 years. If the interest rate and average inflation rate are 15% and 6%, respectively, calculate the present worth of the entire period.
- An investor owns a property that produces an NOI of $110,000 and has an annual debt service of $70,000 and the forecast of cost recovery and interest deductions are $38,427 and $58,593 respectively. The investor’s marginal tax rate is 35 percent. The investor’s projected cash flow after taxes is: A. $30,000 B. $35,457 C. $43,256 D. $25,8211. Suppose that annual income from a rental property is expected to start at P65,000 per year and decrease at a uniform amount of P2,500 each year after the first year for the 15-year expected life of the property. The investment cost is P400,000, and interest is 9% per year. Is this a good investment? Assume that the investment occurs at time zero (now) and that the annual income is first received at end of year one.An investment will provide after-tax revenue of $22,336 per year for 7 years. What is the present value of this revenue stream assuming a discount rate of 5.25%?
- What would taxes be with a marginal rate of 40% for each year? What would the add back depreciation for each year be with straight line depreciaiton of $720 million over 12 years?The expected annual net income is $200,000; the average investment is $800,000; and depreciation expense is $50,000. The annual rate of return isAssume $100,000 is available for investment and MARR =10% per year. If alternative A would earn 25% per year on inveatment of 60,000 and B would be earn 20% per year on investment of 75000 the weighted average(ROR) of A