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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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Answer:

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Explanation:

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Answer:

Geographic segmentation

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Example of Geographic segmentation approach include  large production of raincoats to those areas that experience heavy rainfall etc

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3 years ago
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Answer:

d. quality.

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-Quality refers to the degree in which the appliances can meet the customer's requirements.

According to this, the answer is that based on its customers, ABC should try to dominate the market in quality because its products meet the expectations of professional chefs and that should be market to focus on as the company can have an important advantage by providing exactly what they need.

The other options are not right because professional chefs are interested on what they can do with this appliances and not on price, quantity or delievery area.

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