Business, 24.06.2020 17:01 peno211

The monthly income from a piece of commercial property is $1,200. Annual expenses are $3,000 for upkeep of the property and $1,000 for property taxes. The property is surrounded by a security fence that cost $4,000 to install four years ago a. If i = 12% per year (the MARR) is an acceptable interest rate, how much could you afford to pay now for this property if it is estimated to have a resale value of $150,000 10 years from now?
b. Draw a cash-flow diagram for this situation. Use the viewpoint of the buyer.
c. Based on this situation, give an example of an opportunity cost.
d. Based on this situation, give an example of a fixed cost.
e. Based on this situation, give an example of a sunk cost.
f. If the 12% interest had been a nominal interest rate, what would the corresponding effective annual interest rate have been with bi-weekly (every two weeks) compounding?

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 14:00

After creating an organizational strategy based on porter’s models, a company can a) create process models. b) calculate inputs and outputs. c) examine market structure. d) develop information systems. only answer if you're positive! you!

Answers: 2

Answer

Business, 22.06.2019 09:30

Any point on a country's production possibilities frontier represents a combination of two goods that an economy:

Answers: 3

Answer

Business, 22.06.2019 12:10

Bonds often pay a coupon twice a year. for the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. using the values of cash flows and number of periods, the valuation model is adjusted accordingly. assume that a $1,000,000 par value, semiannual coupon us treasury note with three years to maturity has a coupon rate of 3%. the yield to maturity (ytm) of the bond is 7.70%. using this information and ignoring the other costs involved, calculate the value of the treasury note:

Answers: 1

Answer

Business, 22.06.2019 12:50

Suppose the real risk-free rate and inflation rate are expected to remain at their current levels throughout the foreseeable future. consider all factors that affect the yield curve. then identify which of the following shapes that the u.s. treasury yield curve can take. check all that apply.

Answers: 2

Answer

You know the right answer?

The monthly income from a piece of commercial property is $1,200. Annual expenses are $3,000 for upk...

Questions