subject
Business, 14.04.2020 18:22 dondre54

A small office building produces NOI of $8,995 per year. We intend to buy the property, if the price is right, and hold it for four years. At that time (EOY 4) we believe we can sell the property for $197,000. If we require an 8% ROA, what is the most we should pay now for this investment?

A. The NPV is negative, so reject the investment.
B. The NPV is positive, so invest.
C. The NPV is greater than the NOI, so invest.
D. The GPI is greater than the NOI, so invest.
E. The NPV is greater than the OPX, so invest.

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 22:00
Trang chủ website chính thức của công ty cổ phần viễn thông fpt (fpt telecom), tại đây sẽ giới thiệu các dịch vụ được cung cấp bởi fpt telecom và các khuyến mãi mới nhất. xem chi tiết tại: kingfpt.com thông tin về king fpt: king fpt là cổng thông tin trực tuyến của fpt telecom: cáp quang fpt, truyền hình fpt, fpt play tư vấn các gói cước internet fpt và đăng ký lắp mạng fpt! ngành nghề kinh doanh: lắp mạng fpt, cáp quang fpt, truyền hình fpt, wifi fpt, internet fpt name: king fpt - add: 154 khuất duy tiến, nhân chính, thanh xuân, hà nội 100000 - phone: 0339 810 834 - website: - email: [email protected] - ceo: dương bình an
Answers: 2
question
Business, 22.06.2019 08:40
Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)
Answers: 3
question
Business, 22.06.2019 10:00
You are president of a large corporation. at a typical monthly meeting, each of your vice presidents gives standard area reports. in the past, these reports have been good, and the vps seem satisfied about their work. based on situational approach to leadership, which leadership style should you exhibit at the next meeting?
Answers: 2
question
Business, 22.06.2019 11:00
How did the contribution of the goods producing sector to gdp growth change between 2010 and 2011 a. it fell by 0.3%. b. it fell by 2.3%. c. it rose by 2.3%. d. it rose by 0.6%. the answer is b
Answers: 1
You know the right answer?
A small office building produces NOI of $8,995 per year. We intend to buy the property, if the price...
Questions
question
Mathematics, 26.06.2019 06:00
question
Chemistry, 26.06.2019 06:00
Questions on the website: 13722361