Mr. Johnson owns a small apartment building with an annual Gross Rent Roll of $325,000. Assume expenses are expected to be 40% of Gross Rent Roll, what is the valuation of the building using a 5 cap rate? Select the best approximate value: a) $2.9 million b) $3.9 million c) $4.9 million d) $5.9 million

Mr. Johnson owns a small apartment building with an annual Gross Rent Roll of $325,000. Assume expenses are expected to be 40% of Gross Rent Roll, what is the valuation of the building using a 5 cap rate? Select the best approximate value: a) $2.9 million b) $3.9 million c) $4.9 million d) $5.9 million

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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