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Question
| Units | 275 | 300 |
| Gross Revenue | $3,267,000 | $3,564,000 |
| Vacancy | 163,350 | 178,200 |
| Expenses | 1,143,450 | 1,247,400 |
| Net Operating Income | $1,960,200 | $2,138,400 |
| Cost | $22,000,000 | $22,800,000 |
Consider the table above. An investor-developer demands a return of at least 9percent on cost. Which of the following statements is TRUE based on the information above?
(a) Neither project produces a sufficient expected return
(b) The 275 unit project produces a sufficient return, but the 300 unit project does not
(c) The 300 unit project produces a sufficient return, but the 275 unit project does not
(d) Both projects produce sufficient return, but the 275 unit project produces a higher return than the 300 unit project
Answer
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Related questions
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If sold next year Sale price
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