What is the cumulative annual growth rate of the property

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Problem 1: If the debt service coverage ratio (DSCR) is 1.25x, annual debt service and operating cost is $400,000, what must the Revenues be?

(a) $524,000

(b) $544,000

(c) $556,250

(d) $564,000

Problem 2: "A" buys a property for $3 million and sells it 8 years down the road for $6 million. Ignore any income received during the 7-year holding period. What is the cumulative annual growth rate (CAGR) of the property's value?

(a) 5.57%

(b) 9.05%

(c) 15.73%

(d) 25.50%

Problem 3: In determining the value of a property, a cap rate of 8.0% implies that the property can be sold at hollowing multiple of its NOI:

(a) 12.5x

(b) 14.0x

(c) 16.5x

(d) 18.0x

Reference no: EM132955333

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