1.

Assume the following data:

Gross Income: P 2,350,000/year

Allowance for Vacancy & Bad debts: 5% of Gross Income/year
Operating Expense: P 220,000/year
Building Value: P 15.0M
Interest rate on Land: 8%
Economic Life of building: 40 years

Using Land Residual Technique, compute the Value of the Property:

2. Assume the following data:

Net Operating Income: P 2,350,000/year

Land Value: P 5.0M
Interest rate on Land: 8%
Economic Life of building: 40 years

Using Building Residual Technique, compute the Property Value: