Answered: What is the NOI of an industrial…

What is the NOI of an industrial building of 50,000 SF with monthly rents of $1.00 per SF on an NNN lease with a 5% vacancy rate and $5.00 per SF/year Taxes, Insurance and Operating Expenses.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 2DQ: A company could sell a building for 250,000 or lease it for 2,500 per month. What would need to be...

See similar textbooks

Related questions

Q: The table presents 2019 data from the national income and product accounts of the U.S. A. Which…

A: The Expenditure method: GDP = Personal Consumption + Gross Private Investment + Government's…

Q: aim settlement, the

A: Building and personal property coverage form is insurance that covers the physical damage which is…

Q: b. Hedging

A: The stock market refers to the buying and selling of the shares in publicly held companies by the…

Q: ve Php 100 a month you can deposit into an account earning 3.9% APR, compounded monthly. How long…

A: As there is more compounding the more is the interest rate and more is the accumulation of interest…

Q: a. If you make quarterly payments of $2000 how much will you have saved in 25 years? b. Instead, if…

A: Given : Rate of Interest = 3.5% p.a. compounded quarterly. In the above question it is given that…

Q: n problem: A company is going to buy a new machine for manufacturing its product. Four different…

A: Equivalent annual cost is the annual cost which includes the all cost that are necessary and…

Q: 4. For the mortgage payment example in Chapter 17, use the Scenario Manager to create a report…

A: Monthly payment: A mortgage is a loan used to buy or maintain a home, land, or other sorts of real…

Q: eligible for redemption before it is due to b

A: A callable bond, also known as a redeemable bond, allows the issuer to redeem it before the maturity…

Q: Jason has participated in a 2% per year of service, career-average, defined benefit pension plan for…

A: Annual sallary for last 3 years are:- Year -1 = 25000 Year-2 = 30,000 Year-3 = 35,000 Pension per…

Q: give three examples for each context. 1.Portfolio analytics

A: Standard disclaimers “Since you have asked multiple question, we will solve the first question for…

Q: Determine, via the present value method, which machine Tim should recommend.

A: The Present value method measures the Net present value of all the future cash flows related to an…

Q: 4.10) PVIFA you need to repay the loan by equal payments at the end of every 6 months Example 9: You…

A: Given, The loan amount is P50,000 Interest rate is 10% Term is 3 years

Q: You borrow money on a self liquidating installment loan (equal payments at the end of each year,…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: In order to have ₱1 million in a fund at the end of 15 years, how much must be deposited in the fund…

A: Future value (FV) is ₱1,000,000. The maturity period is 15 years. The interest rate is 10.5%. The…

Q: Hyundai Motor Company is a large multinational automotive manufacturer based in Seoul, South Korea,…

A: The following information given in the question. 1. HYMTF stock sold at $39 on 21 August, 2015 2.…

Q: A bank has agreed to lend you $127,800 for a home loan. The loan will be fully amortized over 57…

A: Amortization is a term used in business to describe the process of spreading payments out over time.…

Q: Hammer Corporation wants to purchase a new machine for $284,000. Management predicts that the…

A: Net present value = Present value of annual cash inflows + Present value of salvage value -…

Q: Based on the values in the Table below, identify the present value of benefits for Year 5 if the…

A: The present value of a project is used to measure its profitability as it shows if the project will…

Q: A promissory note has a face value of 22275.00 and it has a date of issue of November 15 this year.…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: 3. As part of your future retirement planning, you purchase an annuity that pays 3.5 % Search…

A: The retirement planning involves accumulation of funds till retirement age which will be used to…

Q: Q1: Explain the following: (250 words) Big Data Analysis Distributed Computing Virtualization

A: Big Data Analysis: Big data analytics refers to the application of advanced analytic techniques to…

Q: The real risk-free rate of interest is 4%. Inflation is expected to be 3% this year and 4% during…

A: Treasury Bills (T-bills) and Bonds are the securities that provide stagnant returns to investors as…

Q: You believe that Rose, Inc., the stock is going to fall and you’ve decided to sell 1,300 shares…

A: Given, Number of shares 1300 Current price of share is $58 Initial margin is 60%

Q: last un Your answer must be correct to exactly 4 decimal places and must not include the percent…

A: Internal Rate of Return (IRR): It is the rate at which the net present value of an investment or a…

Q: How much more will you have in your RRSP 30 years from now if you start to contribute $1000 per year…

A: The payments made constantly without any uneven time gap are called annuity where nominal amount for…

Q: Income tax is levied on all of the following taxable items except: O Wages O Interest and dividends…

A: Income tax is levied on Wages, Interest and dividends from moeny invested and Capital gains from…

Q: What exactly does the term "FMS option" imply and what is its significance?

A: A flexible manufacturing system (FMS) can boost productivity and minimize production costs. Flexible…

Q: You are asked to invest $30 million in a bond portfolio consisting of only two bonds. Bond A has a…

A: Concept. Bond duration is way of measuring how much bond prices are likely to change if there is…

Q: A B C Php Php Php Php First cost 24,000 30,000 49,600 52,0 Power per year Labor per Php Php Php Php…

A: Given,

Q: The future value of the account with interest compounded annually is The account earns $____ (what…

A: Future Value: It is the future worth of a present sum of amount and is calculated by the product of…

Q: The next dividend for the Ali Baba company will be $6 per share. Investors require a 19 per cent…

A: Next dividend (D1) = $6 Required return (r) = 19% Growth rate (g) = 9% Period from now for valuation…

Q: What’s one personal finance lesson that you find important?

A: Handling the reality of personal money may be difficult, even for an adult with a lot of…

Q: be greater than 40.00. The risk-free rate is 4%. Calculate the price of a one-year European call…

A: European call can be exercised on the expiration of call option unlike the American call option…

Q: The proceeds of a $9000, 8 year promissory note earning 5% compounded semi-annually were 10,475. How…

A: The notes carry the interest rate and are paid on maturity with interest and principal amount of…

Q: You have S10,000 to invest for 90 days. Current spot rate: S1.32/£. The 90-day forward rate is…

A: Forward rate = [Spot rate * (1 + domestic interest rate) ]/ (1 + foreign interest rate).

Q: Why when the US Federal Reserve raises interest rates, some countries raise interest rates as well?…

A: The monetary payment for the privilege of borrowing money is known as interest, and it is often…

Q: ABC Technologies has been growing quite rapidly in recent years and has a growth potential of 27%…

A: Value of stock using earning approach will be present value of all EPS and present value of terminal…

Q: Can someone elaborate the step by step solution on this? I am somehow uncertain about the step by…

A: Future Value F is 270 Present Value P is 250 Time period is 90 days Number of days in a year are 360…

Q: Amanda Chin purchased a home for $296,000; she put 20% down with a mortgage rate of 3.785% for 30…

A: A mortgage is a type of loan, especially on properties, where the collateral is the property itself.…

Q: Determine the amount of cash paid to bondholders for bond interest for each of the six independent…

A: Cash paid for interest = Interest expense - interest payable + unamortized discount

Q: The 40-year-old makes a contract by paying the 6500 TL he has to the insurance company. If the…

A: Amount of investment is 6500 TL Interest rate is 3%

Q: business purchases 3 new press machines for $150,000 each or a total of $450,000. It borrows…

A: Total cost of assets purchased to the loan taken for assets would give the loan to value ratio.

Q: Practice B. I Total asset is PHP750,000. Sales is PHP1,500,000. What is the total asset turnover? 2.…

A: Accounts receivable turnover = sales/Accounts receivable

Q: Charlie Corporation is a chemical company. The company issued an outstanding bond with a P100,000…

A: Par value of bond (FV) = P100,000 Coupon rate = 8% Quarterly coupon amount (C) = 100,000*0.08/4 =…

Q: An analyst gathers the following data: · Expected rate of return on the market = 14% ·…

A: Stock may be underpriced or overpriced depending on the whether required rate is above or below the…

Q: operating income (EBIT) f

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Ms. Rahat hails from a business family. She is considering starting a supermarket with an investment…

A: The payback period is the amount of time required where cash flows have been enough to recover the…

Q: Suppose a bond has a price today of $800, a coupon rate of 4.95%, and six years remaining to…

A: A bond is a debt instrument that has a specific maturity date. The yield to maturity is the rate…

Q: Q2. Deposits are to be made to an account as indicated in the table below which bears interest at…

A: Here,

Q: If Sherry borrows 4000 SAR now, 3000 Sar 7years from now, and 1500 SAR 8 years from now and earn at…

A: Amount borrowed in year 0 (B0) = 4000 SAR Amount borrowed in year 7 (B7) = 3000 SAR Amount borrowed…

Question

What is the NOI of an industrial building of 50,000 SF with monthly rents of $1.00 per SF on an NNN lease with a 5% vacancy rate and $5.00 per SF/year Taxes, Insurance and Operating Expenses.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:

VIEW

Step 2: Calculation:

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

(1) Assume that the lease payments were actually 280,000 per year, that Consolidated Leasing is also in the 25% tax bracket, and that it also forecasts a 200,000 residual value. Also, to furnish the maintenance support, it would have to purchase a maintenance contract from the manufacturer at the same 20,000 annual cost, again paid in advance. Consolidated Leasing can obtain an expected 10% pre-tax return on investments of similar risk. What are its NPV and IRR of leasing under these conditions? (2) What do you think the lessors NPV would be if the lease payment were set at 260,000 per year? (Hint: The lessors cash flows would be a mirror image of the lessees cash flows.)
Lions Co. has machinery that cost $150,000. It is to be leased for 15 years with rent received at the beginning of each year. Crone wants a return of 10%. Compute the amount of the annual rent.
ANB Leasing is planning to lease an asset costing $210,000. The lease period will be 6 years. At the end of 6 years, the salvage value is estimated to be $30,000. The asset will be depreciated on a straight-line basis of $30,000 per year over the 6-year period. ANB's marginal income tax rate is 40%, but its average tax rate is only 31.5%. Assuming ANB Leasing requires a 12% after-tax rate of return on the lease, determine the required annual beginning of the year lease payments. a. $31,592 b. $46,120 c. $45,609 d. $52,653
Suppose a firm which wants to purchase a piece of machinery borrows $10,000 to be repaid inive equal payments at the end of each of the next 5 years, and the interest rate is 15%, calculatehe annual payments associated with the repayment of this debt. Please finish the table below.lease round to 2 decimal places.
A retail tenant signed a lease agreeing to pay $12.00/SF in base rent plus 3% of sales over a breakpoint of $1.8 million. If the retailer has $6.0 million in sales this year, how much will that retailer have to pay in percentage rent?
A building is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every month thereafter is required, how many months will it take to pay for the building? Interest is charged at a rate of 12% compounded monthly A. 100 B. 70 C. 142 D. 121
Assume you can lease an item you need for a project for GH¢950/day. To purchase the item, thecost is GH¢13,000 plus a daily operational cost of GH¢ 300/day.a. How long will it take for the purchase cost to be the same as the lease cost? Critically discuss the appropriate make or buy decisions to be made in case the item will beused for; i. ii. iii. At most 15 daysMore 15 days but not exceeding 20 daysAt least 20 days
An engineering firm can pay for its liability insurance on an annual or monthly basis. If paid monthly, the insurance costs $4500. If paid annually, the insurance costs $50,000. What are the monthly rate of return and the nominal and effective interest rates for paying on an annual basis?
Jenny Enterprises has just entered a lease agreement for a new manufacturing facility. Under the terms of the agreement, the company agreed to pay rent of $12,500 per month for the next 10 years with the first payment due today. If the APR is 6.48 percent compounded monthly, what is the value of the payments today?
A company lease equipment for 7 years. The equipment cost 28,000 and the owner wants to earn 9.5 percent on the lease. What should be the required lease payments?
Assume the following: 2,000 SF rentable area, 4-year triple net lease at $18.00 p.s.f. per year, with monthly payments ($1.50 per month). Tenant improvements paid by tenant at lease commencement (that will not be recovered): $40,000, 8% discount rate is appropriate What is "effective" rent p.s.f.? Assume the following: 2,000 SF rentable area, 4-year triple net lease at $18.00 p.s.f. per year, with monthly payments ($1.50 per month). Tenant improvements paid by tenant at lease commencement (that will not be recovered): $40,000, 8% discount rate is appropriate What is "effective" rent p.s.f.? $23.82 $24.05 $23.28 $22.98
Compute the monthly payments on a 4-year lease for a $28,745 car if the annual rate of depreciation is 15% and the lease's annual interest rate is 3.2%. Round your answer to the nearest dollar.