An apartment building is generating income of $250000. Maintenance expenses total 40% of this income and vacancy loss is 12% of income. The market supports a capitalization rate of 12.75%. Using the income capitalization approach, what is the years to purchase? Please show formula for solution without using financial calculator or excel. I am using a texas instruments calculator.
An apartment building is generating income of $250000. Maintenance expenses total 40% of this income and vacancy loss is 12% of income. The market supports a capitalization rate of 12.75%. Using the income capitalization approach, what is the years to purchase? Please show formula for solution without using financial calculator or excel. I am using a texas instruments calculator.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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An apartment building is generating income of $250000. Maintenance expenses total 40% of this income and vacancy loss is 12% of income. The market supports a capitalization rate of 12.75%. Using the income capitalization approach, what is the years to purchase? Please show formula for solution without using financial calculator or excel. I am using a texas instruments calculator.
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