DETERMINING ACQUISITION COST Practice Problems (Show step by step detailed solution explanation) 1. A 4-door apartment is being rented for P6,000.00 per door, and is subject to annual maintenance of P14,400.00 and realty tax of P6,000.00. A buyer for the property is satisfied with a 12% return on investment. At how much should he buy the property? 2. A prospective buyer of a house and lot 300 sqm. consulted his architect who advised him that the present cost to duplicate the house is P3M. The architect also estimated that effective age of the house is 10 years and the economic life for such structure is 50 years. If the buyer is willing to pay P5,000.00 per sqm. lot, at how much should he buy the property? 3. An apartment property has an annual net income of P150,000.00. A buyer can avail of a mortgage loan equivalent to 70% of the capital requirement at 15% annual interest. If the buyer is satisfied with a 10% yield on his equity, at how much should he buy the property? 4. A property has an annual gross income of P1,200,000.00. In his market study, an investor found that a comparable property with an annual gross income of P1 Million was recently sold for P6 Million. On the basis of the gross income multiplier indicated by the comparable property, at how much should he buy the property