What fee would preserve normans original expectation

Assignment Help Basic Statistics

Reference no: EM132463965

Norman takes a call from his appraiser and receives the news that, in the appraiser's expert opinion, the project would actually earn a one-year return of 22% but if the building turns out to be worthless at the end of the year, Norman would not only lose all of his equity, but, should this happen he would also need to pay the city a fee for the demolition of the building and environmental restoration of the site.

a) What fee would preserve Normans original expectation of a 20% return by the end of the year?

b) If the current value of that fee does preserve his expectation, would Norman's concern be justified?

c) For this same fee, would Norman change his requested fee of $10 800 000 to sell the project rights?

Reference no: EM132463965

Questions Cloud

Calculate the standard cost per unit for direct materials : Last year's sales were expected to total 50,000 units. Calculate standard cost per unit for direct materials, direct labor, and variable manufacturing overhead

Probability p of winning the indicated amount-probability : Each gamble ( one gamble per row of the table) presents you with a probability p of winning the indicated amount and probability (1-p) of losing

Role of ethics and the various internal control processes : Role of ethics and the various internal control processes that need to be in place and Body of the report with sections to answer the above issues.

Data flow diagram of revenue cycle : Describe the various transaction cycles, financial reporting, management reporting systems and e-commerce and the role of ethics and the various internal

What fee would preserve normans original expectation : a) What fee would preserve Normans original expectation of a 20% return by the end of the year?

What would be the marketing roi under the conditions : The coupon redemptions were used by people who would have purchased coffee at the usual price, what would be the Marketing ROI under these conditions?

Data flow diagram of expenditure cycle : Understand the risks inherent in computer-based systems/ERP, including e-commerce, the role of ethics and the various internal control processes.

Calculating probabilities of normal-standard normal : Identify the Excel functions used for calculating probabilities of normal and standard normal distributions

Discuss the advisability of having one GAAP for all company : Describe the advisability of having one GAAP for all companies regardless of size or type of ownership, or allowing publicly held (larger) companies

User Account

All Pages