Gross Income Multiplier ï‚· Net Income Multiplier ï‚· Operating Ratio ï‚· Break Even ï‚· Debt Coverage Ratio ï‚· Overall Cap Rate ï‚· Equity Dividend Rate ï‚· Cash on Cash Return ï‚· Present Value of Cash Flows ï‚· Net Present Value ï‚· Profitability Index ï‚· Investment Value ï‚· Internal Rate of Return Which option would you select given the following factors: Annual Growth Rate: 4% Required Rate of Return: 8% Tax Rate: 15% Equity Available: $150,000 Loan Rate: 4% Holding Period: 12 Years Annual Price Appreciation: 3.5% per year *For this example, we will not consider the vacancy rate for now. BUSI 622 Page 2 of 2 Units Sales Price Avg Revenue Per Unit/Month Annual Operating Expenses (Interest not included) Duplex 2 $ 125,000.00 $ 615.00 $ 6,642.00 Duplex #2 2 $ 105,000.00 $ 575.00 $ 6,210.00 Fourplex 4 $ 245,000.00 $ 850.00 $ 22,160.00 Apartment Building #1 16 $ 600,000.00 $ 600.00 $ 69,840.00 Apartment Building #2 32 $ 1,200,000.00 $ 695.00 $ 162,096.00 Single Family Home #1 1 $ 189,000.00 $ 1,750.00 $ 11,010.00 Single Family Home #2 1 $ 215,000.00 $ 2,000.00 $ 13,400.00

Gross Income Multiplier Net Income Multiplier Operating Ratio Break Even Debt Coverage Ratio Overall Cap Rate Equity Dividend Rate Cash on Cash Return Present V class=


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