Question: Please need help sloving ( Type out answer ) Ned Stark wants to buy a building. The annual revenues are $350,000 and annual operating expenses

Please need help sloving ( Type out answer )
Please need help sloving ( Type out answer ) Ned
Please need help sloving ( Type out answer ) Ned
Please need help sloving ( Type out answer ) Ned
Please need help sloving ( Type out answer ) Ned
Ned Stark wants to buy a building. The annual revenues are $350,000 and annual operating expenses are $125,000. Ned decides that a fair and honorable price to pay would be $4,000,000. What is the cap rate of this purchase? 5.625% 3,125% 8.75% 11.875% Question 2 0.5 pts After Ned's unexpected and almost immediate demise, his son Robb inherits the building, Ever the crazy optimist, Robb expects that through his superior management skills, revenues will grow 5% in Year 2 and expenses will decrease 3% in Year 2. If Robb is successful, assuming cap rates are unchanged (from Question #1), what will the value of this building be at the end of Year 2? $4,377,778 $4,080,000 $4,244 444 After Robb's unexpected and almost immediate demise, his cousin Jon Snow inherits the building, Jon Snow knows nothing about real estate, but he does sense that the economic climate is changing. One indication of this is the valuation the probate court puts on the building. The value is 25% less than the price Ned paid for the building. Assuming rents and expenses are unchanged since the time Ned purchased the building, what is the current cap rate? 7.5% 6% 8.75% 3% 0.5 pts D Question 4 Jon Snow's worst fears are realized. Increasingly harsh conditions lead to lower occupancies and higher expenses, due mainly to higher utility expenses. Revenues drop by 5% a year after Year 1. and expenses increase by 3% a year after Year 1. At the end of Year 2 Jon Snow quits in frustration and sells the building to Dwight Walker for the same cap rate that applied when he inherited it. What does Walker pay for the building? $2.716,666 $3,622,222 $1.528.125 Little sister Arya Stark decides she wants to pursue a career in real estate like the rest of her family. Her approach, however, will be different. She vows to view market conditions clearly and unemotionally, and to be disciplined and hardworking in managing her assets. She decides to try her luck in a new market with sunnier economic conditions. She purchases a partially empty building with great potential that has revenues of $150,000 and expenses of $75,000. At a 6% cap rate on current NOI, what does she pay for the building? $1,250,000 $900,000 $3,750,000 0.5 pts Question 6 Arya is a real estate rock star. Her revenues increase by 20% in Year 2. Her expenses increase at 2% after Year 1. If she sells the building at 6% cap rate at the end of Year 2, what price will she get? $1,725,000 $2,500,000 $1,500,000 If she she sells the building for $2,000,000, what cap rate is that? 5.175% 6% 4.5%

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