What is value of building ifcap rate for type of commercial

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Problem 1: A comercial property has a gross income of $100,000 per month. Operating expenses total $250,000 per year excluding income tax, property tax and insurance expense. Income tax is $350,000 per year, property tax is $15,000 per year, and insurance expense is $13,000 per year. If the cap rate for this type of commercial property is 7.0, what is the value of the building?

Reference no: EM133006975

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