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3 years ago

Real estate finance:

Business

1 answer:

Andrei [34K]3 years ago

4 0

Answer:

This is a typical true or false statement.

The correct option is true

Explanation:

The IRR is the rate of return where Net Present Value of an investment is zero.

With a IRR of 35%,it implies that a higher discount rate is used in bringing the cash flows to present terms,which means that the cash flows so discounted are worthier than cash flows whose discount rate is just 12%.

In other words, the investment in the building apartment of 35% IRR is preferable to investment of supermarket anchored stri[p shopping center

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If the real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money marke

kondaur [170]

Answer:

2. False

Explanation:

The market for money is like the market for any other good: if demand is higher than supply, then, the price of money (the interest rate), will have to be lowered, so that money becomes cheaper and more abundant, and supply and demand become equal and reach equilibrium.

In this case, the centrla bank needs to lower the interest rates by buying bonds. When the central bank buys bonds, it prints more money that is put in the market, effectively increasing the supply of money, and lowering the interest rate in the meantime.

6 0

3 years ago

Lincoln, Inc., which uses a volume-based cost system, produces cat condos that sell for $90 each. Direct materials cost $15 per

pogonyaev

Answer:

The gross profit margin for the cat condo is 50%

Explanation:

Since the gross profit per unit is not given, so first we have to find it. The calculation is shown below:

= Selling price per unit - Direct materials cost per unit - direct labor costs per unit - Manufacturing overhead per unit

= $90 per unit - $15 per unit - $10 per unit - $20 per unit ( $10 per unit × 200%)

= $45 per unit

Now apply the Gross profit formula which is shown below:

= (Gross profit per unit ÷ selling price per unit) × 100

= ($45 per unit ÷ $90 per unit) × 100

= 50%

7 0

3 years ago

The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,460,000, $152,000 in the common stock account,

elixir [45]

Answer:

Follows are the solution to this question:

Explanation:

Formula:

$\text{Asset cash flow = creditors cash flow + equity cash flow}\\\\ \text{creditors cash flow = payment of interest-net new loans}\\\\ \text{Cash flow to lenders = interest charged}-( LTD_{end}-LTD_{beg}) \\$

$\text{Cash flow} =100000 -(1700000- 1460000) = - \$ 140,000 \\$

$\text{Shareholder cash flow = paid dividends-net new shares} \\\\\text{Cash flow = interest paid - (Common} + APIS_{end})- \text{(Common +} APIS_{beg}))\\\\$

$\text{Cash flow to the inventory holders}= 157000 -(162000 +3070000))-(152000+2770000) = - \$ 5997000$

$\text{Asset cash flow = - \$ 6,137,000}$

6 0

3 years ago

Contribution Margin and Contribution Margin Ratio

emmainna [20.7K]

Answer:

See below

Explanation:

Variable food and packaging = $6,129.7

Variable payroll = $4,756.0

Variable general, selling and administrative expenses = 40% × $2,487.9 = $995.16

Fixed general, selling and administrative expenses = 60% × $2,487.9 = $1,492.74

Fixed occupancy = $4,402.6

Total fixed cost = $1,492.84 + $4,402.6 = $5,895.34

Total variable cost = Variable food and packaging + Variable payroll + Variable general, selling and administrative expenses

= $6,129.7 + $4,756 + $995.16

= $11,880.86

a. McDonald's contribution margin

= Sales - Variable cost

= $18,169.3 - $11,880.86

= $6,288.44

b. McDonald's contribution margin

= Contribution margin / Sales

= $6,288.44 / $18,169.3

= 34.61%

c. Increase in operating income

= $500 million × 34.71

= $173,050,000

7 0

3 years ago

What power does a market leader in an oligopoly have

s2008m [1.1K]

Oligopoly a market structure in which a few late firms dominate a market.

6 0

3 years ago

Read 2 more answers