Answer:
the cap rate is 6%
Explanation:
The computation of the cap rate is as follows:
= Net operating Income ÷ Current market value of property
= $120,000 ÷ $2,000,000
= .06
= 6%
Hence, the cap rate is 6%
We simply divided the net operating income from the Current market value of property so that the cap rate could come
Answer:
$5 million
Explanation:
If we follow the Coase Theorem, the appropriate solution to this case should be obtained regardless of initial rights. In this case, the factory saves $5 million to the producer, but it costs $10 million to Boston residents. if Boston residents pay $5 million or more to the factory owner, then both would benefit. Boston residents will gain $10 - $5 = $5 million, as well as the factory owner.
One way of quantifying the personal value of a good or
service is by having to find the monetary value of a particular something by
which the person is likely to be willing to trade in—in exchange for a
particular good or a service.
Answer:
$51,608.69
Explanation:
Given that
Interest rate = 5%
Future value = $85,000
Time period = 10 years
So by considering the above information, the Present value is
= Future value ÷ (1 + interest rate)^time period
where,
Future value = $85,000
Interest rate = 5% ÷ 12 months = 0.4166%
Time period = 10 years × 12 months = 120 months
Now the present value is
= $85,000 ÷ (1 + 0.4166%)^120
= $51,608.69
