A Property That Produces a Level of NOI of $200,000

question 18

Multiple Choice

A property that produces a level of NOI of $200,000 per year is expected to be sold in year 5 for $2,000,000.If the property was purchased for $2,000,000,what percent of the IRR can be attributed to the operating income only?

• A)10.0%
• B)90.0%
• C)37.9%
• D)63.1%

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Definitions:

Mnemonic Devices

Techniques a person can use to help them improve their ability to remember something.

Emotional Intelligence

The awareness of and ability to manage one’s own emotions to facilitate thinking and attain goals, as well as the ability to understand emotions in others.

Traditional Views

Conventional or long-standing beliefs or opinions, often based on historical practices or societal norms.

Goleman

Daniel Goleman, an author, psychologist, and science journalist known for his work on emotional intelligence.