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pogonyaev
3 years ago
15

A small office building produces NOI of $8,995 per year. We intend to buy the property, if the price is right, and hold it for f

our years. At that time (EOY 4) we believe we can sell the property for $197,000. If we require an 8% ROA, what is the most we should pay now for this investment?
A. The NPV is negative, so reject the investment.
B. The NPV is positive, so invest.
C. The NPV is greater than the NOI, so invest.
D. The GPI is greater than the NOI, so invest.
E. The NPV is greater than the OPX, so invest.
Business
1 answer:
IrinaVladis [17]3 years ago
7 0

Answer:

Option B is correct.

<u>The NPV is positive, so invest.</u>

Explanation:

Year Cash Flow

0          -160000

1            8995

2             8995

3             8995

4           205995

$13,512.46

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3 years ago
Listening, writing, speaking, observing and _____________________ all play an integral part in our contemporary lifestyle.
Elena-2011 [213]

Answer:

empathizing; communication

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4 0
2 years ago
"North Shore Community College reimburses faculty members $.535 cents per mile to go to a workshop. Professor Wales submitted he
Pachacha [2.7K]

Answer:

$347.81

Explanation:

Data provided in the question

Cents per mile to go to workshop = $0.535

And, the total miles traveled = 650.11 miles

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= $0.535 × 650.11 miles

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In order to find out the reimbursement, we simply multiplied the cents per mile with the total miles traveled

7 0
3 years ago
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Answer:

$84,200

Explanation:

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3 years ago
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