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Business, 20.07.2019 06:10 sleimanabir

Areal estate developer is evaluating a 40-unit apartment development. the expected average occupancy is 90%. cost of land: $1,200,000 construction: $$4,800,000 project life: 25 years maintenance: $100 per unit per year (regardless of weather a unit is occupied). annual insurance and property taxes: $400,000 required return: 12% per year (0.9489% per month) assume that the building will have no salvage value at the end of 25 years, but the land will appreciate at a rate of 5% per year. determine the total minimum monthly rent (all units combined) that should be charged, given the required return.

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Areal estate developer is evaluating a 40-unit apartment development. the expected average occupancy...
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