minus necessaryoperating expenses. However, NOI is a before-income-tax figure on a property’s income and cash flow statement, that excludes principal and interest payments on loans, capital expenditures, depreciation, andamortization.
Cash-on-cash yield does not include any appreciation or depreciation in the investment. Calculations based on standard ROI will incorporate the total return of an investment; on the other hand, cash-on-cash yield simply measures the return on the actual cash invested. A cash-on-cash yield is...
000 Plant – cost 12,000 Plant - accumulated depreciation at 31 March 20X8 3,000 Inventories 2,500 Trade receivables 1,500 Bank 8,250 Trade payables 1,700 Rent prepaid 400 Wages accrued 300 Capital account 19,400 Profit for the year ended 31 March 20X8 9,750 34...
However, only net rents are included, the total rent minus depreciation of rental property.Interest includes the total sums paid by private businesses for loans, including the interest paid on savings, certificates of deposits, and corporate bonds....