An office building is rented at $27psf, gross with operating expenses at $11psf. Net income therefore is
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An office building is rented at $27psf, gross with operating expenses at $11psf. Net income therefore is $16psf. If the purchase price is $260psf the going in cash-on-cash return is 6.5%. Show a sensitivity analysis showing the cash-on-cash returns by changing the rental rate and operating expenses.
Prepare the analysis showing variations $1psf changes in both variable for two adjustments in each direction (increased or decreased).
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: