The potential gross income of a warehouse is $36,000 per year, and the vacancy rate is 2%. the taxes are $2,000 per year; monthly maintenance costs are $300. quarterly reserves are $450, debt service is $13,500 annually and depreciation is $3,500 annually. if the capitalization rate is 12% what is the estimated value of the warehouse?

The estimated value of the warehouse is $232,333

Explanation:

For computing the estimated value of the warehouse, the following calculations is required which is shown below:

= Gross income - vacancy rate - yearly maintenance -  yearly taxes - yearly reserves ÷ capitalization rate

where,

Gross income is $36,000

Vacancy rate is = $36,000 × 2% = $720

Yearly maintenance = Monthly maintenance × Number of months in a year

= $300 × 12

= $3,600

Yearly reserves = Quarterly reserves × Number of quarters in a year

= $450 × 4

= $1,800

Yearly taxes = $2,000

So, the value equal to

= $36,000 - 720 - $3,600 - $1,800 - $2,000 ÷ 12%

= $27,880 ÷ 12%

= $232,333

The other cost is ignored because it is not related to the computation part.

Hence, the estimated value of the warehouse is $232,333

start by isolating the variable on one side by adding 43w^2 to both sides.   the equation will read:

25w^2+5=0

*subtract 5 from both sides*

25w^2=-5

*divide both sides by 25*

w^2=-1/5

*take the square root of both sides*

w=√(-1/5)

the square root of -1 is i.   the square root of 5 remains √5

the answer is i/√5.

hope this

answer; the cpi;