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

Other questions on the subject: Business

Business, 22.06.2019 03:50, haydenbell269

John is a 45-year-old manager who enjoys playing basketball in his spare time with his teenage sons and their friends. at work he finds that he is better able to solve problems that come up because of his many years of experience, but while on the court, he finds he is not as good keeping track of the ball while worrying about the other players. john's experience is:

Answers: 1

continue

Business, 22.06.2019 04:30, divagothboi

How does your household gain from specialization and comparative advantage? (what is produced, what is not produced yet paid to a specialist to produce? )

Answers: 3

continue

Business, 22.06.2019 10:40, jonnaevans4856

You were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. recently, you saw that stubhub was listing similar seats for $225 apiece. what does it cost you to attend the concert?

Answers: 1

continue

Business, 22.06.2019 21:00, TH3L0N3W0LF

The purpose of the transportation approach for location analysis is to minimize which of the following? a. total costsb. total fixed costsc. the number of shipmentsd. total shipping costse. total variable costs

Answers: 1

continue

Do you know the correct answer?

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