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natta225 [31]
3 years ago
6

A client has requested advice on a potential investment opportunity involving an income-producing property. She would like you t

o determine the internal rate of return of the investment opportunity based on the following information: expected holding period: years; end of first year NOI estimate: $113,900; NOI estimates in subsequent years will grow by 5% per year; price at which the property is expected to be sold at the end of year 5: $1,615,205.22; current market price of the property: $1,475,667.71.
A. -15.30%
B. 8.60%
C. 9.86%
D. 10.00%
Business
1 answer:
s2008m [1.1K]3 years ago
5 0

Answer:

The correct answer is D. 10.00%

Explanation:

To get internal rate of return we use excel or a spreadsheet.  See document attached.

Make the cash flow to solve this problem.  At moment 0 we have the investment cost , in this case $1.475.668 (negative) From period 1 to period 5, we have different incomes o benefits.  Salvage value is 1.615.205, we are going to get it at moment 5 (positive).

Then, we calculate the Net cash flow that is the difference between benefits and cost.

We use all the result (positive and negative) in Net cash flow to get the IRR.

Net Present Value (NPV) 768907

Internal Rate of Return (IRR) 10,00%

Download xlsx
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Management decisions typically lack structure. are always free of risks. are made under conditions of perfect certainty. are con
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Complete Question:

Which of the following is true of managerial decision making?

Group of answer choices.

A. Most managerial decisions lack structure.

B. Managerial decisions are always free of risks.

C. Managerial decisions are taken under conditions of perfect certainty.

D. Managers show consistency in their decisions in response to novel problems.

E. A manager’s decisions have the characteristics of programmed decision

Answer:

A. Management decisions typically lack structure.

Explanation:

The management of an organization or business firm are typically involved in taking up leadership roles and as such are expected to build a strong relationship between their employees by creating a fair ground for effective communication and sharing of resources and information.

A decision-making process can be defined as a cognitive process which typically involves an individual or business selecting the best option, course of action, or belief among several alternatives, so as to meet a particular need or accomplish a goal. Thus, it typically involves the process of gathering informations, accessing and weighing the informations with their alternatives and choosing the best option.

Generally, management decisions are considered to typically lack structure because most problems are novel and as such would require different procedures to follow in proffering solutions. Thus, most management decisions are non-programmed decisions making them to lack structure i.e being unstructured.

6 0
3 years ago
Need help asap!!!! pls
kap26 [50]

Answer:

I'm pretty sure it b, and if it's not I am so srry

6 0
3 years ago
If the U.S. dollar is strong, foreign imports are
DaniilM [7]
D. Less expensive…………….
5 0
3 years ago
Smith Corporation makes and sells a single product called a Pod. Each Pod requires 2.4 direct labor-hours at $10.60 per direct l
kramer

Answer:

$585,120

Explanation:

The computation of Budgeted direct labor costs is shown below:-

Direct labor cost per pod = Direct labor required per pod x Direct labor rate

= 2.4 × $10.60

= $25.44

Budgeted direct labor costs incurred in June = Direct labor cost per pod × Produced pods

= $25.44 × 23,000

= $585,120

Therefore for computing the budgeted direct labor costs we simply applied the above formula.

4 0
3 years ago
IBM's Smarter Planet campaign markets IBM as a company that provides innovative solutions that improve the world's IQ. This is a
Sergeu [11.5K]

IBM's Smarter Planet campaign markets IBM as a company that provides innovative solutions that improve the world's IQ. This is an example of organization marketing.

<h3><u>Explanation:</u></h3>

Marketing function plays a vital role in the success of any company. It is the process by which the companies will first find the potential markets for selling their products and then promote their products saying how they vary from the other similar products.

Organisation marketing is the strategy that is being used by the business  but a difference is that here customers will buy their products and do not used those products personally. In the example given, IBM markets innovative solutions that helps in improving the Intelligence Quotient. This acts as an example of  organization marketing.

6 0
3 years ago
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