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Question 1 (1 point) Listen Assume a retail tenant is paying a base rent of $100,000 per year. In addition, the tenant must pay 5 percent of gross store sales in excess of $120,000 per month as percentage rent. If the store produces $100,000 in gross sales in a month, what is the total rent due for the month? Excel a) $0 b) $1,000 c) $7,333 d) $8,333 e) $9,333
Question 6 (1 point) Listen → You are considering the acquisition of a small office building. The purchase price is $575,000. Seventy percent of the purchase price can be borrowed with a 30-year, 4.5 percent mortgage. Payments will be made annually. Up-front financing costs will total three percent of the loan amount. The expected before-tax cash flows from operations--assuming a 5-year holding period-are as follows: Year BTCF 1 $51,800 2 55,600 3 63,200 4 68,700 5 $73,800 The before-tax cash flow from the sale of the property is expected to be $225,000. What is the net present value of this investment, assuming a 9 percent required rate of return on levered cash flows (rounded to $Thousands)? Excel