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Effective gross income = Total Potential income-Expenses- management fees
Total potential income = gross rental income + vending receipts- gross rental income vacancy
gross rental = $145000
vending receipts = $5000
rental vacancy = $7250
total potential income = $142,750
Expenses = taxes+insurance +maintenance + utilities + repairs +legal fees
Expenses = $40,000
management fee = (total potential income- expenses) x.04
management fee = $4110
gross effective income = $142750-$40000-$4110
= $98640
Answer:
$ 347,818
Explanation:
Intrinsic value of property = Net operating income / Capitalisation rate
WHILE
Net operating income = Earning from property - Operating expenses which is related to property
Earning from Property =
($8600+$200)*12*85%
=$8800*12*0.85
=$89,760
Operating expenses;
Property tax $10,000
Insurance $3,500
Advertising expenses $1,500
Maintenance cost $12,500
Interest expenses $24,00
Total $51,500
Net operating income =$89,760-$51,500
=$38,260
Net operating income for perpetuity
Intrinsic value = 38260/0.11
=$ 347,818
Therefore the intrinsic value of the property is $ 347,818
Answer:
decreased by 4.5%
Explanation:
A family consumes: 10 pizzas, 7 pairs of jeans, and 20 gallons of milk.
In 2016, pizzas cost $10 each, jeans cost $40 per pair, and milk cost $3 per gallon.
The family's total cost of living in 2016 is:

In 2017, pizzas cost $8 each, jeans cost $40 per pair, and milk cost $3 per gallon.
The family's total cost of living in 2017 is:

The change, in percentage, of a typical family's cost of living is:

The cost of living decreased by 4.5%
<span>The issue here is whether Tracy had enough to drink that would cause him to be mentally incapacitated. If Tracy was mentally incapacitated, the contract would be rendered unenforceable and thus, Tracy would not need to honor the contract and vice versa. However, if Tracy cannot show this, the contract will likely be upheld.</span>