Answered: Find the value of the building and the…

Engineering

Civil Engineering

Find the value of the building and the net operating income?

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter18: Life-cycle Costing

Section: Chapter Questions

Problem 16RQ

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Question

There is a building that has 15 floors, a grocery store and a gym, the rent for the floors 1-5 is 3000 per month, for the floors 6-10 is 4000 per month, for the floors 11-15 is 5000 per month, for the grocery store the rent is 6000 per month, for the gym the rent is 6500 per month, the effective gross income is 12%, the operating expense is 8% and the capital expedinture is 6% and the annual market increase is 4%.

Find the value of the building and the net operating income?

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Step 3: Calculation of property value

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