You're given Comp A an income of $100,000, value of $1,000,000 and cap rate of 10%, Comp
Question:
You're given Comp A an income of $100,000, value of $1,000,000 and cap rate of 10%, Comp B an income of $110,000, value of $1,000,000 and cap rate of 11%, Comp C an income of $120,000, value of $1,000,000 and cap rate of 12%, what cap rate would you apply in determining the offering price if your subject property has an income of 130,000?
Question 34 options:
You're planning to acquire the subject property that has an income of $130,000, applying the cap rate of 10%, your offering price is $1,300,000.
You're planning to acquire the subject property that has an income of $130,000, applying the average cap rate of 11%, your offering price is $1,181,818.
You're planning to acquire the subject property that has an income of $130,000, applying the cap rate of 11%, your offering price is $1,181,818.
You're planning to acquire the subject property that has an income of $130,000, applying the cap rate of 12%, your offering price is $1,083,333.
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell