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:

Leadership

The act of guiding or influencing a group towards achieving a common goal.

Numerous

Existing in large quantities; very many.

Leadership Processes

The series of actions or steps taken by an individual or group to guide and influence others towards achieving goals.

Level

A particular stage, degree, or intensity in a hierarchy or process.