An entrepreneur is considering a new project consisting of anapartment building with 50 units....

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Accounting

An entrepreneur is considering a new project consisting of anapartment building with 50 units. Each unit can be rented for$950/month. It is expected to have an average vacancy rate of 8%.Net operating expenses are budgeted as 30% of the project's grossannual income. What would be the economic value of this projectusing a cap rate of 8.3%?

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ANSWER Number of units 50 Rent per unit per month 950 Average vacancy rate 8 Gross monthly income 43700 5095018 Gross annual income 524400 4370012 Net operating See Answer

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In: AccountingAn entrepreneur is considering a new project consisting of anapartment building with 50 units. Each...An entrepreneur is considering a new project consisting of anapartment building with 50 units. Each unit can be rented for$950/month. It is expected to have an average vacancy rate of 8%.Net operating expenses are budgeted as 30% of the project's grossannual income. What would be the economic value of this projectusing a cap rate of 8.3%?