Pockey Company has assembled the following market data, based on commercial real estate sales in the area
Question:
The building purchased by Pockey Company, which is called Building Z, has 32,000 square feet and a capitalization rate of 9.3%. What is the fair value of BuildingZ?
Transcribed Image Text:
Selling Price Square Feet Capitalization Rate 10,000 20,000 30,000 40,000 50,000 7% 8% 9% 10% $700,000 $1.425,000 $2,000,000 $2500,000 $3,000,000 ,750,000 1550,000 1400,000 625,000 550,000 500,000 .250,000 1.100.000 1.000,000 2,250,000 2.000,000 1,800,000 2,625,000 2,300,000 2,100,000
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Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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