How many more months could the company stay in singapore

Assignment Help Microeconomics
Reference no: EM13948701

our company wants to lease an office building in Singapore and has found a good location downtown. The asking lease payment is US$15,000 per month including utilities and your company estimates needing it for between 2 to 4 years. The office owner is willing to write you a contract that allows you out of the lease any time after 2 years for a cash payment of US$25K, but if you vacate before 2 years the whole 4 year lease payment less payments to date will be charged.

- If your company has only $350K budgeted in funds to spend risk on this lease, after how many months will they have to vacate if they do not add money or set up an investment plan? Is this a good business deal?

- If the Company can invest an additional $1000 each month at 11% annual could they avoid the early vacation fine and how many more months could the company stay in Singapore and remain within the $350,000 budget?

Reference no: EM13948701

Questions Cloud

Which three countries have most equal income distribution : The two points for the international income distributions reported in Table 8-1 can be used to make a rough calculation of the Gini coefficient. Use a spreadsheet to estimate the Gini coefficient for each country. Which three countries have the mo..
What will its profit in london be in this case : Assume that Toyota transports the cars to London by itself at a cost of $120 per car. What price should Toyota set in London in order to maximize its profit? What will its profit in London be in this case?
What are the alternatives facing chesbrough inc : What are the alternatives facing Chesbrough, Inc., with respect to production of component K-25? List the relevant costs for each alternative. Suppose that Chesbrough, Inc., purchases K-25 from Berham Electronics.
How did the new american nation deal with slaves : Declaration of Independence- How did the new American nation deal with Slaves and Slavery
How many more months could the company stay in singapore : If the Company can invest an additional $1000 each month at 11% annual could they avoid the early vacation fine and how many more months could the company stay in Singapore and remain within the $350,000 budget?
How to find local minimum of t using only o(log n) to node t : A node v of T is a local minimum if the label x_v is less than the label x_w for all nodes w that are joined to v by an edge.
What impact on profit would result from dropping product c : What impact on profit would result from dropping Product C? Now what is the impact on profit if Product C is dropped?
What is the minimum price that she should accept : Suppose Sue values being her own boss at $10,000, and we are in the situation of Question 8 (she might get an Offer B next week). What is the minimum Offer A she should accept?
Per year simple interest : Your aunt lends you $5000 for 7 years at 9% per year simple interest; then the entire proceeds are invested for 13 years at 8% per year, compounded annually. How much money will your aunt have at the end of the entire 20-year period?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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