Mr Tyson Is Deciding Whether to Purchase an Investment Property

question 15

Multiple Choice

Mr. Tyson is deciding whether to purchase an investment property that he estimates to have operating costs of $325,000 per year, gross potential income of $500,000, and a vacancy rate of 7.5%. A similar property with an NOI of $122,000 recently sold for $1,000,000. What is the estimated value of this building?

• A)$137,500
• B)$325,000
• C)$1,122,392
• D)$1,125,343
• E)$1,127,049

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Definitions:

Igbo Women

Female members of the Igbo people, an ethnic group primarily located in southeastern Nigeria, with distinct social, cultural, and historical identities.

Aristocracy

A class of people holding exceptional rank and privileges, especially the hereditary nobility.

Governing Noble Elite

A social class of people with high status and power, often involved in the administration and ruling of a country or area.

Legitimacy

The recognition and acceptance of an authority, institution, or government as right and proper, often derived from law, custom, or consent.