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Implicit rental price of the warehouse

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Reference no: EM131605727

Suppose a company owns a warehouse that costs $500,000 and depreciates at $10,000 per year. If the interest rate is 5%, what is the implicit rental price of the warehouse?

  • $25,000
  • $10,000
  • $500
  • $35,000

If mortgage interest rates increase, we would expect the quantity demanded of housing to:

  • increase
  • decrease

Reference no: EM131605727

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