(Answered) Question a property has a net rent cash flow or net income

Statistics

Question: A property has a net rent (cash flow or net income) of $1.5m per year and is selling at a cap rate of 8.5%. What is the price of the property? Recalculate the price assuming a 9.75% cap rate and a 7.25% cap rate. [Note: This method of valuing income property, dividing the current net income by the cap rate, is known as direct capitalization, a widely used shortcut valuation method.

View complete question

Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M92540388
Price:- $15

Verified Expert

Priced at $30 Now at $15, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Statistics and Probability

Given a trendline of y 5832x 135799 where the variable x

Given a trendline of y = 5832x + 135799, where the variable x represents the age of a home (in years) and the variable y represents its current market value (in dollars), use this trendline to predict the current market ...

A factory makes parts for laptop computers including screws

A factory makes parts for laptop computers, including screws. The screws are required to have the right length. The lengths of the screws obey a normal distribution with mean μ=4.25 millimeters and standard deviation σ=0 ...

A forest type consists of three species of trees25 are

A forest type consists of three species of trees: 25% are Douglas-fir 40% are Hemlock 35% are Western Red Cedar a) What is the probability that a tree selected at random will be a Douglas-fir? b) What is the probability ...

Armstrong faber produces a standard number-two pencil

Armstrong Faber produces a standard number-two pencil called Ultra-Lite. The demand for Ultra-Lite has been fairly stable over the past ten years. On average, Armstrong Faber has sold 457,000 pencils each year. Furthermo ...

Suppose that college science textbooks on average cost 225

Suppose that college science textbooks on average cost 225 dollars with a standard deviation of 45 dollars. Suppose that a random sample of 40 college science textbooks was taken. Find the probability that the sample mea ...

Question 1 decision theorythere are two available

Question: 1. Decision Theory There are two available diagnostic methods ¬- D1 and D2 - to predict if a tissue sample is benign or malignant. Ninety percent of the samples processed are benign. The performance of the diag ...

You hold a stock with price 100 that can increase by 10 or

You hold a stock with price $100 that can increase by 10% or decrease by 10% m a year. The interest rate is 5% a) Suppose that you want to ensure that you'll get a minimum of $I00 in a year regardless of the evolution of ...

At a college 66 of courses have final exams and 56nbsp of

At a college, 66 % of courses have final exams and 56 % of courses require research papers. Suppose that 45 % of courses have a research paper and a final exam. Find the probability that a course has NONE of these two r ...

Folgers has specified that the average amount of coffee

Folgers has specified that the average amount of coffee that goes into one of their small coffee cans is not to exceed 13.24 ounces. A quality control inspector for Folgers takes a random sample of 16 cans and found the ...

5 of females smoke cigarettes what is the probability that

5% of females smoke cigarettes. What is the probability that the proportion of smokers in a sample of 865 females would be greater than 3%

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Statistics and Probability Expert