The value that would be assigned to this house if you decide to use it as your office would be $ 425300
<h3>How to solve for the value of the house using opportunity cost</h3>
To get the value of the house, you have to get the opportunity cost of the house. This is the foregone alternative or benefits forgone due to another choice.
The formula is opportunity cost = Apprised Value - Selling costs
The apprised value = $439,500.
selling cost = $14,200
$439,500 - $14,200
= $ 425300
Hence the value that should be assigned to it is $ 425300
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Answer:
Explanation:
The base pay rate is about 350,000 Aus dollars. This morning the Aus$ had an exchange rate of 1 Aus$ = 0.7001 US dollars, so that means the base rate is about 0.7 * 350000 = 245,000 US dollars. I don't know what the 6 years does to the equation.
Answer:
d. $757,991.26
Explanation:
Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
= (325,000/1.10) + (425,000/1.10^2) + (450,000/1.10^3) + (400,000/1.10^4)
= $1,257,991.25743
NPV = Present value of inflows - Present value of outflows
NPV = $1,257,991.25743 - $500,000
NPV = 757991.25743
NPV = $757,991.26
