Solution-Estimated property value and land value

Estimated property value and land value

Reference no: EM131041348

As an owner of Murooj Investment Company, you are considering the purchase of land that could be developed into an office project. At the present time, you believe that the site could support a 150,000 rentable square foot project with average rents of $25 per square foot and operating expenses of $13 per square foot. You also expect rents to grow at 5% indefinitely and believe that you should earn a 14% return (r) on investment. The building would cost $100 per square foot to build.

What would the estimated property value and land value be under the above assumptions?

Reference no: EM131041348

Questions Cloud

What are the relevant cash flows : What are the relevant cash flows? How do they change if the market price of the machine is $600,000 instead?

What is the market rate of return on stock : The stock is expected to pay $1.80 per share next month when the annual dividend is distributed. Auto Deliveries has established a pattern of increasing its dividends by 4.8 percent annually and expects to continue doing so. What is the market rat..

What technique would you use to identify delighters : Products fail for many reasons, and testing can identify possible failure points before launch. When preparing a budget for product testing, explain why or why not you would invest the time and money to identify delighters, those things that make cus..

Describe how to formulate and present the project plan : Describe how to formulate and present the project plan and recommendations for the organization your learning team chose. This is a rough draft for review and feedback; the final version will be required for submission before Week 5 class session ..

Estimated property value and land value : What would the estimated property value and land value be under the above assumptions?

When engaged in strategic management activities : When engaged in strategic management activities, a choice is often made between innovation leadership and innovation followership. Compare and contrast these two activities. When might management teams find an innovation leadership role a possible di..

Market price per bond : Oil Well Supply offers a 8 percent coupon bond with semiannual payments and a yield to maturity of 8.73 percent. The bonds mature in 8 years. What is the market price per bond if the face value is $1,000?

Is the earned income credit a form of negative income tax : Individuals who receive substantial Social Security benefits are usually not eligible for the tax credit for the elderly or disabled because these benefits effectively eliminate the base upon which the credit is computed. Explain.

The passage of the wagner act : The passage of the Wagner Act of 1935 and the creation of the NLRB provided the first legal means for holding employers accountable for at least some of their disciplinary decisions and actions.

User Account

All Pages

Estimated property value and land value

Reference no: EM131041348

Reference no: EM131041348

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

On january 1 2013 gibson corporation entered into a

Calculate the weighted cost of the capital of this project

Explain why setting a higher discount rate is not a cure

Determine the current market prices of the following 1000

Impact the budget deficit and the national debt

What is the expiration value of clayton warrants

Carson company recognizes the importance of a high stock

In proper format prepare the income statement statement of

A firm over-invests in net working capital

The international debt crisis-causes

Explain the terms short-term borrowing and long-term

Calculation of operating profit margin and time interest

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT