Break-even-rent-elasticities

Assignment Help Business Management
Reference no: EM131292923

Go to https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?ref=economy&_r=0&abt=0002&abg=0

(In case this link does not work: go to www.nytimes.com and search for "Upshot Is It Better to Rent or Buy")

Keep all default assumptions and assume the home you want buy costs $1.5m. The resulting "break-even rent" is then $4,819 (note: you can simply enter the home's price instead of adjust it on the graph). We are now interested in the effect of various variables on the "break-even rent."

Calculate the "break-even-rent-elasticities" 1of the a) mortgage rate b) down payment c) home price growth rate d) rent growth rate e) investment return rate f) inflation rate g) property tax rate h) marginal (income) tax rate

For each variable assume an increase by 10%. For variables that are measured in % use a percentage of the percentage. For instance, if inflation were 4% a 10% increase results in a 4.4% (and not a 14%) inflation rate. Also, for each variable hypothesize why the "break-even rent" will be increasing or decreasing (just one sentence). Note: Make sure you always go back to the default adjustments when you calculate the elasticity of a new variable.

Reference no: EM131292923

Questions Cloud

Degree of operating leverage : 1. The degree of operating leverage with which the company operates. 2. The increase in profits that will occur if the production and sale is increased by 10,000 units.
Classify the following properties as intensive or extensive : Classify the following properties as intensive or extensive. Give appropriate explanations: temperature, entropy, pressure, volume, number of moles, density, internal energy, enthalpy, molar volume, mass, chemical potential, and Helmholtz free ene..
Highlight how the changes in culture : 1. Highlight how the changes in culture, politics, cross-border trade and investment have impacted Hong Kong? 2. Briefly review the country's economic history, current status, future potential impacts, both internally and globally.
Examine performance management issues and processes : Analyze issues involved in job design, resource planning, and recruitment.Evaluate an organization's approaches to and procedures for training employees to meet organizational goals.Examine performance management issues and processes.Use technology a..
Break-even-rent-elasticities : Calculate the "break-even-rent-elasticities" 1of the a) mortgage rate b) down payment c) home price growth rate d) rent growth rate e) investment return rate f) inflation rate g) property tax rate h) marginal (income) tax rate
What is the work required to compress 1 mol of an ideal gas : What is the work required to compress 1 mol of an ideal gas from 1 to 100 atm at room temperature? Express the work in J, erg, cal, and L atm units. Note that the latter three are not SI units.
Accounting records of shook industrial manufacturing : The following selected data were taken from the accounting records of Shook Industrial Manufacturing: Determine the machine supplies and property taxes for May. By using the high-low method, analyze Shook's plant maintenance costs and calculate the m..
Are you a classical or keynesian economist : Would like some help using your original content (no plagiarism please) to answer the following discussion question: Are you a Classical or Keynesian economist? Pick a perspective and defend.
Evaluate policies and processes that promote a diverse work : Determine employment laws that apply to the selection, development, and management of employees.Evaluate policies and processes that promote a diverse workforce.Use technology and information resources to research issues in employment law.

Reviews

Write a Review

Business Management Questions & Answers

  Negotiating tactics across cultures compare usa to

negotiating tactics across cultures compare usa to japanneed some help selecting two countries to research need to

  Describe the history and core business of each company

Describe the history and core business of each company. Compare and contrast the approach to management that each company has pursued in order to embrace innovation

  Sport management personnelexplain how the history of the

sport management personnelexplain how the history of the sport business industry can be helpful for sport management

  Should john smythe sell the names

Should John Smythe sell the names? - Does the AMA Statement of Ethics address this issue? - Write a brief paragraph on what the AMA Statement of Ethics contains that relates to John Smythe's dilemma.

  What is emotional intelligence

How can your EQ help you? Is one (EQ or IQ) more valuable than the other?

  Describe the four steps that lead managers

Define strategic planning and briefly describe the four steps that lead managers and the firm through the strategic planning process. Discuss the role marketing plays in this process.

  How do you apply critical thinking skills while at workhow

how do you apply critical thinking skills while at work?how have the critical thinking skills you have developed while

  Identify key ways that apple''s progress report has changed

Identify the key ways that Apple's Progress Report has changed since last year. Provide detailed speaker notes of what you would say if you were delivering the presentation.

  Briefly express the purpose of the system

Briefly express the purpose of the system, the components of the system, draw a casual loop diagram also in plain language express the diagram.

  Introduction of breadtalk singapore and its general plans

Introduction of Breadtalk Singapore, nature of its business and its general plans in Singapore- Job analysis that includes of a chosen department or a position in the company.

  El bulli: the taste of innovation

Instructions: Read the case which can be found on the iTunes U course shell and write a brief case analysis about the organization. A case analysis is NOT a summary, but rather an in depth examination of the concepts described as they relate to th..

  Describe the source of the data and assess

Knowing the limits of a high-performance player would allow a basketball team to have a better idea about how to structure a salary and bonus program.

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!

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