What is the market value of this property

Assignment Help Accounting Basics
Reference no: EM133089321

Question - Your client is opening a new building this year. According to budget projections, annual NOI forecasts are as follows:

Year 1: $35,000

Year 2: $55,000

Year 3: $55,000

Year 4: $68,000

Year 5: $107,000

The required rate of return on investments of this type is 11%. The capitalization rate for similar 4-year-old buildings is 10%. The cost of sale is$53,500.

Required - What is the market value of this property using discounted cash flow analysis?

a. $785,986.33

b. $830,780.03

c. $922,165.64

d. $1,187,832

Reference no: EM133089321

Questions Cloud

Calculate the rate constant and half-life of the reaction : Determine the order of the reaction using integration and graphical method and Calculate the rate constant and half-life of the reaction
How do communicate their green efforts to the public : Discuss how businesses "Go Green". Pick a company that you feel is focused on going green and is publicly known for their efforts. Please consider these questio
Identify one or more experience goods : Identify one or more experience goods. Identify one or more search goods. How does the retailing of experience goods differ from the retailing of search goods?
Decision-making rm at the courtyard plaza : "That's just crazy," said Warren Calipari, the new FOM at the 400-room Courtyard Plaza hotel. "Of course we should hold all the rooms for transient. I was in Ho
What is the market value of this property : The capitalization rate for similar 4-year-old buildings is 10%. The cost of sale is $53,500. What is the market value of this property
Design a lockout plan if bargaining does not work : Design a lockout plan if bargaining does not work. Use research to describe the elements you would need to consider and how you, as a manager would prepare for
A boat for thureau by william mcdonough : 1) Why is the article entitled "A Boat for Thoreau"? How should this boat be?
What is the future value of an investment : What is the future value of an investment in which payments of $100 have been deposited each month for 18 years at an interest rate of 5%
Time and resource constrained projects : Time and Resource Constrained Projects. Projects are typically classified as time-constrained or resource-constrained.

Reviews

Write a Review

Accounting Basics Questions & Answers

  On february 15 seacroft buys 6200 shares of kebo common at

on february 15 seacroft buys 6200 shares of kebo common at 28.71 per share plus a brokerage fee of 485. the stock is

  Pisa inc leased equipment from tower company under a

pisa inc. leased equipment from tower company under a four-year lease requiring equal annual payments of 86038 with the

  Question - Prepare the journal entries

Question - Prepare the journal entries. Issued shares of common stock to investors in exchange for $121,000 in cash

  What is the purpose of the governmental accounting standards

What is the purpose of the Governmental Accounting Standards Advisory Council

  How many increases will enable stadium view apartments

The current rent is $600.00 per month. How many $60.00 increases will enable Stadium View Apartments maximize its total monthly rent revenue?

  Prepare the appropriate journal entries

June's Jewels uses a job order costing system on March 1,2017 Katy Perry ordered a gold ring. Prepare appropriate journal entries and post them to the ledger.

  Imagine that you are the head coach of a college sports

imagine that you are the head coach of a college sports team. one of your most important objectives is to win as many

  Prepare the first two years of an amortization table

Prepare the first two years of an amortization table using the straight-line method with these dates for a "unamoritized discount" and a "carrying Value"

  Which one of the statements is objective of it governance

Which one of the statements objective of IT governance? Ensure implementation of latest technology regardless of business requirements.

  What is the amount of under- or over-applied overhead

Actual direct labor hours for 2015 were 140,000, and actual overhead was $2,120,000. What is the amount of under- or over-applied overhead for the year

  What is the total amount to be capitalized

What is the total amount to be capitalized as a cost of machinery and What amount is to be adjusted in the financial statements by the event

  How much is the rent expense incurred for the year

On Jan. 2021, a P120,000 check was paid for rental expense of twenty- four months. How much is the rent expense incurred for the year

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!

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