A Property Produces a First-Year Net Operating Income of $24,000

question 13

Multiple Choice

A property produces a first-year net operating income of $24,000.Because of the long economic life of the building,the income is considered as a perpetuity that will grow by 2.5% per year.Using a discount rate of 9.5%,the property value is estimated at:

• A)$276,968
• B)$252,632
• C)$200,000
• D)$342,857

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Definitions:

Cognitive Restructuring

Cognitive Restructuring is a psychological technique that aims to identify and challenge irrational or maladaptive thoughts and replace them with more rational or adaptive thoughts.

High Standards

Expectations or criteria that are significantly above the typical or average level, often challenging to meet or achieve.

Negative Beliefs

Thoughts or convictions that are pessimistic or unhelpful, often contributing to negative outcomes or mental health issues.

Rational-emotive Therapy

Rational-emotive therapy is a form of psychotherapy that identifies irrational beliefs, challenges them, and encourages the development of more rational thought patterns to promote emotional well-being.