If a commercial real estate asset had produced an annual cash flow of $325,000 in Year 1 and $295,000 in Year 2, and the capitalization rate was 4.3%, by how much would the value of the asset have changed at the end of year 2? Show your work.

If a commercial real estate asset had produced an annual cash flow of $325,000 in Year 1 and $295,000 in Year 2, and the capitalization rate was 4.3%, by how much would the value of the asset have changed at the end of year 2? Show your work.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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Ee 65.

If a commercial real estate asset had produced an annual cash flow of $325,000 in Year 1 and $295,000 in
Year 2, and the capitalization rate was 4.3%, by how much would the value of the asset have changed
at the end of year 2? Show your work.

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