User Account

All Pages

Compute the estimated property value

Assignment Help Accounting Basics
Reference no: EM132835168

Consider the following property:

1,000 Square foot; SAR 50 per square foot new.

Depreciation rate equals 10%.

Land value is estimated at SAR 15,000.

Gross Rent Multiplier (GRM) = 4, derived from the market.

Subject potential gross income (P G I) is SAR 150,000 per year.

Problem 1: Calculate the property value estimate with the cost approach.

Problem 2: Calculate property value estimate with the income approach.

Problem 3: A property produces a first-year net operating income of SAR 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%, compute the estimated property value.

Reference no: EM132835168

Questions Cloud

Discuss some of the protected characteristics covered : Discuss some of the protected characteristics covered by equal employment opportunity laws and why they are important in today's employment setting
Briefly discuss the potential use case of application : What internet company are you using? and What is the brand and the model of your router and discuss the potential use case of application
Define firewall security techniques : Define a firewall. Define firewall security techniques. Write the strengths and weaknesses of the Microsoft Windows firewall
Explain the advantages as a borrower of lending institution : Explain the advantages as a borrower or from the perspective of the lending institution. which organization type is it easiest or most difficult to raise money?
Compute the estimated property value : The income is considered as a perpetuity that will grow by 2.5% per year. Using a discount rate of 9.5%, compute the estimated property value.
How much could he withdraw at the beginning of each month : How much could he withdraw at the beginning of each month for the next 30 years and end up with zero in the account
About entrepreneurship in global economy : You have read about entrepreneurship in a global economy. Research other company's strategy for going global.
What is the annual net operating income : Office expenses are SAR 7.50 per square foot and an expense stop is set at SAR 6.50 per square foot. What is the annual net operating income?
How the covid-19 pandemic has affected teens : How the covid-19 pandemic has affected teens and their social skills development, and cognitive development? Approach the issue using a bio-psycho-social.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd