Years old building that is currently vacant

Assignment Help Business Economics
Reference no: EM131759999

Suppose you own a 50 years old building that is currently vacant. you consider renovating the building to a comparable property currently generating an annual rental income of $360000. the renovation cost is estimated at $1.5 million. the annual rental income is expected to grow at a constant 5% per year for the indefinite future. the appropriate discount rate for the NOI after renovation is 16%. if you renovates immediately, the value of the old building is nearest: A. $1.576million B.$1.773million C.$1.824million D.$2.045million E.$2.217million

Reference no: EM131759999

Questions Cloud

University always fills up on evening before football games : A hotel near the university always fills up on the evening before football games. What would be the rate that the hotel will have to pay to a near-by hotel
Compute the carrying amount of the bonds payable : Without making journal entries, compute the carrying amount of the bonds payable at July
Compute the cost of goods destroyed : Leon Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $34, 700.
Create a use case twp comprising five distinct use cases : Create a Use Case TWP comprising five distinct use cases. Ensure that you identify what actor(s) are involved. Format in any manner you are comfortable with.
Years old building that is currently vacant : Suppose you own a 50 years old building that is currently vacant. you consider renovating the building to a comparable property currently generating.
Examine the quality and clarity of the project : Examine the quality and clarity of the project.Did they follow the activity instructions and grading rubric criteria? Explain.
Compute the present value of the minimum lease payments : (Lessee Entries; Capital Lease) On January 1, 2008, Burke Corporation signed a 5-year noncancelable lease for a machine.
Controls for fitness supplements : Promotional decisions for Fitness supplements–Controls for Fitness supplements
Describe the goals and objectives of the project : Describe the goals and objectives of the project. Provide all aspects of the information technology implementation into the project plan.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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