math2

investor cheung is interested in purchasing a 12000 square feet industrial property at 230 logan ave. but it must reflect a cap rate of atleast 9.5%. if the annual gross operating income is $305,000 and the annual expenses are $253,700, what is the maximum that chung would pay perr square feet. ?

 

a) $22.25

 

b) $40.61

 

c) $45.00

 

d) $47.63

 

explain with calculations how you reached this answer.