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labwork [276]
3 years ago
11

You are analyzing an office building to determine if it make sense to build it. the building and site improvements cost $145 and

the investor requires a 6 percent return. if market rents are $11 per square foot. market vacancy and credit loss is 5 percent and expenses are 15 percent. what is market net operating income.
Business
1 answer:
Sophie [7]3 years ago
7 0

Answer:

market net operating profit per square foot = $8.80

Explanation:

total investment = $145 per square foot

the investor requires a 6% rate of return = $145 x 6% = $8.70 per square foot

total revenue per square foot =                                                      $11

proportional market vacancy and credit loss = $11 x 5% =        ($0.55)

<u>other expenses = $11 x 15% =                                                       ($1.65)  </u>

market net operating profit per square foot =                             $8.80

The project should be carried out since the net operating profit is larger than the investor's required rate of return.

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yaroslaw [1]

Answer:

$225,000 F

Explanation:

Calculation for the static−budget variance of​ revenues

Using this formula

Static-budget variance of revenues=(Actual units sold*Actual selling price(-Budgeted units sold*budgeted selling price per units)

Let plug in the formula

Static-budget variance of revenues = (48,000 units × $15) - (33,000 units × $15)

Static-budget variance of revenues=$720,000-$495,000

Static-budget variance of revenues= $225,000 F

Therefore the the static−budget variance of​ revenues will be $225,000 F

5 0
2 years ago
Which of the following statement(s) is(are) true regarding the variance of a portfolio of two risky securities? I) The higher th
andre [41]

Answer:

The degree to which the portfolio variance is reduced depends on the degree of correlation between securities is the correct answer.

Explanation:

3 0
3 years ago
davis corporation is preparing its manufacturing overhead budget for the fourth quarter of the year the budgeted variable manufa
julia-pushkina [17]

Answer:

$129,600

Explanation:

Calculation for want the total budgeted manufacturing overhead for october is

Using this formula

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Let plug in the formula

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3 years ago
Suppose you have won a free ticket to see a Bruce Springsteen concert. This ticket has no resale value. Also suppose that U2 has
steposvetlana [31]

Answer: $72

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It is totally depend upon the preferences of the consumers or individuals.

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