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madreJ [45]
2 years ago
12

An office building grosses $850,000 per year and expenses of 35% of the gross. If the property is capitalized at 12% what is its

value?
Business
1 answer:
nikklg [1K]2 years ago
6 0

first calculate the total expense by multiplying $850,000 × 35% = $297,500.

Next calculate the net operating income $850,000 - $297,500 = 552,500.

Then take the net income of $552,600 and divide by 12% = 4,604,167

so your answer is 4,604,167

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