Arya is a real estate rock star. Her revenues increase by 20% in Year 2 and...
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Arya is a real estate rock star. Her revenues increase by 20% in Year 2 and 5% each year thereafter. Her expenses increase at 2% per year. If she sells the building at 6% cap rate at the end of Year 5, what price will she get? If she she sells the building for $3,135,000, what cap rate is that? Arya is a real estate rock star. Her revenues increase by 20% in Year 2 and 5% each year thereafter. Her expenses increase at 2% per year. If she sells the building at 6% cap rate at the end of Year 5, what price will she get? If she she sells the building for $3,135,000, what cap rate is that?
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To determine the price Arya will get at the end of Year 5 we need to calculate her net operating inc... View the full answer
Related Book For
South Western Federal Taxation 2015 Essentials Of Taxation Individuals And Business Entities
ISBN: 9781285438290
18th Edition
Authors: James Smith, William Raabe, David Maloney, James Young
Posted Date:
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