A property was purchased 5 years ago for $1mil and provided NOI of $70,000 in Year 1, increasing at 5% per annum. What price would a potential buyer have to pay today; if income yields for the property have fallen by 1%? Select one: a. $1,122,341 b. $945,202 c. $1,488,995.17 d. $985,333 e. $1,215,506

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.