User Account

All Pages

Benefit-cost ratio analysis

Assignment Help Macroeconomics
Reference no: EM1399758

An investor is considering buying some land for $100,000 and constructing an office building on it. Three different buildings are being analyzed.

Building Height
2 Stories 5 Stories10
Stories

Cost of building $400,000 $800,000$2,100,000

(Excluding cost of land)

Resale value* of land 200,000 300,000400,000 and building at end 20-year analysis period

Annual rental income 70,000 105,000256,000 after all operating expenses have been deducted Resale value to be considered a reduction in cost, rather than a benefit. Using benefit-cost ratio analysis and an 8% MARR, determine which alternative, if any, should be selected.

Reference no: EM1399758

Questions Cloud

Test the claim that tutoring has an effect on math scores : Using a 0.01 level of significance, test the claim that the tutoring has an effect on the math scores.
What fiscal policy would you implement : What fiscal policy would you implement and why? Graph and explain the whole situation from start to finish, make up your own numbers. Make up your own MPC from that you will be able to derive the multiplier.
A fresh extended-life light bulb has a usual service : A fresh extended-life light bulb has a usual service life of 743 hours with a standard deviation of 49 hours. If the service life of these light bulbs approaches a normal distribution,
Tremendously competitive organizational culture : You work as a forecaster in the marketing department for Springfield International (SI). SI utilizes a weak matrix to develop new services. Management has created a tremendously competitive organizational culture that places an emphasis upon achie..
Benefit-cost ratio analysis : Benefit-cost ratio analysis and an 8% MARR, determine which alternative, if any, should be selected.
Define serial entrepreneur : Steve Chen, former PayPal engineer who co-founded YouTube, explain what he have done to be successful in their career. What is a serial entrepreneur? Is this a new phenomenon.
Perceptions toward people from cultural groups : Acquiesce a three to four page paper addressing the following concerns. Variety climate is defined as organizational members' attitudes as well as perceptions toward people from cultural groups other than their own
Are companies equal from point of view of fat amount : Are the companies equal from point of view of fat amount? Test at .02 significance level
Substantial price differentials between different brands : Bottled water trades at least 200 times the price of tap water with substantial price differentials between different brands

Reviews

Write a Review

Macroeconomics Questions & Answers

  Conflicting views of analysts

Suppose you are a junior analyst at a well-known mutual fund corporation and are assigned to value, say, the stock of General Electric.

  Calculating expected dividend payout ratio

Flavortech Corporation expects EBIT of $2,000,000 for the current year. The firm's capital structure consists of 40% debt and 60% equity, and its marginal tax rate is 40%.

  If an owner of a industry wanted to make a trip

If an owner of a industry wanted to make a trip for non-business use and their lost wages was not tax-deductible.

  Calculate net present value of benefits

Corporation A is planning the purchase of a new machine that would lower cash outflow. The cost of the machine is 30,000. The annual reduction in cash flows is:

  Effects of an adverse technological shock

Explain two effects of an adverse technological shock on the labor market and on the output market - explain two effects of an adverse technological shock on the labor market and on the output market.

  Market clearing price and quantity

Obtain the market clearing price and quantity. Under the assumption of profit and maximization , how much output should the representative firm produce?

  Law of increasing opportunity costs-production possibilities

Show such data graphically. Upon what specific assumptions is this production possibilities curve based? If the economy is at point C, what is the cost of one more automobile? Of one more forklift? Describe how the production possibi..

  Explain how could the advertising be employed to allow

Explain how could the advertising be employed to allow KinderCare to keep price above average cost without encouraging the entry.

  According to moderate growth your return rapid expansion

According to moderate growth your return will be 8 percent. If there is a rapid expansion, your portfolio will return 15 percent.

  Explain whether monetary and in-kind payments

Explain whether monetary and in-kind payments are sources of motivation. If they are not, defend your answer.

  Explain the government uses policies like student loans

Explain the government uses policies like student loans and free trade to influence the economy's growth rate.

  Elucidate these factors in terms of the production curve

Illustrate what is the efficiency factor. Elucidate these factors in terms of the production possibilities curve.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd