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:

Less Effort

Less effort refers to achieving a goal or completing a task with minimal physical or mental exertion.

Affective Organizational Commitment

The emotional attachment and identification that an employee has towards their organization, influencing their desire to remain part of it.

Emotional Attachment

The affective bond or connection one develops with an object, individual, or concept, often leading to feelings of closeness or personal significance.

Identification

The process of associating oneself with certain groups, ideas, or qualities, leading to a sense of belonging or alignment with those entities.