00:01
Firstly, evaluating the annual rental income under it.
00:13
We have number of apartment units, which is 160 then rent per unit per month.
00:32
We have is $450.
00:41
So, annual rental income is then evaluated as number of units multiplied by rent per unit per month multiplied by 12.
01:11
So for year 1, we have $450 multiplied by 160 multiplied by 12.
01:25
We get it as $8 ,64 ,000.
01:30
For year 2, we have 864 ,000 multiplied by 1 wherein we add 0 .04.
01:48
We get it as 8 ,98 ,560.
01:56
As it is given that the rental income will increase by 4 % annually starting from year 2.
02:05
Similarly for year 3, we have 8 ,98 ,560 multiplied by 1 wherein we add 0 .04.
02:16
We get the value as 9 ,34 ,982 .40.
02:25
Further for year 4, we have 9 ,34 ,982 .40 multiplied by 1 wherein we add 0 .04.
02:41
We get the value as 9 ,73 ,229 .54.
02:49
For 5th year, the value then is evaluated as 9 ,73 ,229 .54 multiplied by 1 wherein we add 0 .04.
03:05
So we get 10 ,13 ,493 .74.
03:13
Next evaluating vacancy and collection loss allowance, which is 6 % of the potential gross.
03:48
So it is evaluated as annual rental income multiplied by vacancy and collection loss allowance.
04:21
This is the value of this is evaluate as vacancy and collection loss.
04:34
So now for the first year, we have 8 ,64 ,000 multiplied by 0 .06, which is 51 ,840.
04:50
Next evaluating effective gross income as annual rental income wherein we subtract vacancy and collection loss.
05:24
So putting in the values we get 8 ,64 ,000 wherein we subtract 51 ,840.
05:38
So the value then is 8 ,12 ,160.
05:49
Next net operating income also said to be noi is evaluated as effective gross income wherein we subtract the operating expenses.
06:24
So for year 1 put in the values 8 ,12 ,160 dollars wherein we subtract 259 ,891 .20 dollars.
06:52
We get the value as 5 ,52 ,268 .80 dollars...