What is the value of the building-based on its cap rate

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Reference no: EM132058716

1. Your firm is expecting to sell 19241 units for $11 each. The variable cost per unit is $3 and the firm anticipates $21095 per year in fixed costs. Assume that there are no opportunity costs per year. Your firm will have $17929 in depreciation expense and face a 25% tax rate. Based on this, the operating cash flow for the year should be ____?

2. A 15-unit building has a cap rate of 4.25% and generates $87,650 in NOI. What is the value of the building, based on its cap rate? (Round to the nearest 5. Do not use currency symbols).

Reference no: EM132058716

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