What is the development "spread" on a building with a potential stabilized NOI of $100,000; total costs of $1,250,000; and an estimated going out cap rate of 6.5%. .02% 150 basis points 800 basis points 9.5% $1,538,461.54

What is the development "spread" on a building with a potential stabilized NOI of $100,000; total costs of $1,250,000; and an estimated going out cap rate of 6.5%. .02% 150 basis points 800 basis points 9.5% $1,538,461.54

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 1BE: Average rate of return Determine the average rate of return for a project that is estimated to yield...

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Question

What is the development "spread" on a building with a potential stabilized NOI of
$100,000; total costs of $1,250,000; and an estimated going out cap rate of 6.5%.
.02%
150 basis points
800 basis points
9.5%
$1,538,461.54

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