What is the development "spread" on a building with a potential stabilized NOI of $100,000; total costs of $1,250,000; and an estimated going out cap rate of 6.5%. .02% 150 basis points 800 basis points 9.5% $1,538,461.54
What is the development "spread" on a building with a potential stabilized NOI of $100,000; total costs of $1,250,000; and an estimated going out cap rate of 6.5%. .02% 150 basis points 800 basis points 9.5% $1,538,461.54
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 1BE: Average rate of return Determine the average rate of return for a project that is estimated to yield...
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![What is the development "spread" on a building with a potential stabilized NOI of
$100,000; total costs of $1,250,000; and an estimated going out cap rate of 6.5%.
.02%
150 basis points
800 basis points
9.5%
$1,538,461.54](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8975c8e7-3336-4945-ab1a-410de2c3e464%2F85fc1917-bbc5-4119-b2cf-8381448ce77e%2F9cmzdem_processed.jpeg&w=3840&q=75)
Transcribed Image Text:What is the development "spread" on a building with a potential stabilized NOI of
$100,000; total costs of $1,250,000; and an estimated going out cap rate of 6.5%.
.02%
150 basis points
800 basis points
9.5%
$1,538,461.54
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