1. Your firm is expecting to sell 19241 units for $11 each. The variable cost per unit is $3 and the firm anticipates $21095 per year in fixed costs. Assume that there are no opportunity costs per year. Your firm will have $17929 in depreciation expense and face a 25% tax rate. Based on this, the operating cash flow for the year should be ____?
2. A 15-unit building has a cap rate of 4.25% and generates $87,650 in NOI. What is the value of the building, based on its cap rate? (Round to the nearest 5. Do not use currency symbols).