Budget / finance Flashcards
1
Q
Capital Improvement Plan
A
The CIP is typically a five to seven year plan for planning and funding public facilities and infrastructure. It includes both the construction of new facilities and the rehabilitation or replacement of existing capital facilities.
2
Q
Capitalization Rate
A
The capitalization rate is the ratio of Net Operating Income (NOI) to property asset value. So, for example, if a property was listed for $1,000,000 and generated an NOI of $100,000, then the cap rate would be $100,000/$1,000,000, or 10%.
