If Jenny purchased a small office building for $245,000 with a net operating income of $35,750, what is her cash-on-cash return?

To determine Jenny's cash-on-cash return, we need to identify the formula used for this calculation. The cash-on-cash return is calculated using the formula:

Cash-on-Cash Return = (Net Operating Income / Cash Invested) x 100

In this scenario, the net operating income (NOI) is $35,750. However, since the purchase price of the office building is $245,000, and without further details about any financing involved, it's common in basic calculations to consider that the cash invested is the same as the purchase price, especially when assuming there's no mortgage involved in this question.

Using the figures provided:

• Net Operating Income = $35,750
• Cash Invested = $245,000

Now, plug these values into the formula:

Cash-on-Cash Return = ($35,750 / $245,000) x 100

Calculating this:

1. Divide $35,750 by $245,000, which equals approximately 0.14634.
2. Multiply 0.14634 by 100 to convert to a percentage, resulting in a cash-on-cash return of about 14.63%.

Since this rounds to approximately 14.6%, the correct answer