Please refer to the file 101 Conner Drive, Chapel Hill under Assignments for the remainder of this quiz. In addition to the information provided in that file, assume the following: If you buy the property, you will hold it for four years Property taxes in year 1 are 2% of the asking price Utilities and other expenses not covered by the HOA are $1.20 psf There is a tenant-in-place that occupies all of the space and has a 10-year lease Rent grows at 2% annually Expenses grow at 2% annually When you sell the property, you must pay 6% in brokerage commissions Financing is available via a loan with an annual interest rate of 6.5% that requires monthly payments and full amortization over a 25-year period The maximum LTV on the loan is 80% For the purpose of your pro forma cash flow analysis, assume that all mortgage payments are paid at the end of the year (despite the lender requiring monthly payments and amortization being monthly) and that all other expenses are paid at the end of the year. If you buy the property at the sale price listed, what is the going-in cap rate

Suppose that fixed costs for a firm in the automobile industry (start-up costs of factories, capital equipment, and so on) are $5 billion and that variable costs are equal to $17,000 per finished automobile. because more firms increase competition in the market, the market price falls as more firms enter an automobile market, or specifically, , where n represents the number of firms in a market. assume that the initial size of the u.s. and the european automobile markets are 300 million and 533 million people, respectively.a. calculate the equilibrium number of firms in the u.s. and european automobile markets without trade.b. what is the equilibrium price of automobiles in the united states and europe if the automobile industry is closed to foreign trade? c. now suppose that the united states decides on free trade in automobiles with europe. the trade agreement with the europeans adds 533 million consumers to the automobile market, in addition to the 300 million in the united states. how many automobile firms will there be in the united states and europe combined? what will be the new equilibrium price of automobiles? d. why are prices in the united states different in (c) and (b)? are consumers better off with free trade? in what ways?