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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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Marcy Tucker received the following items this year. Determine to what extent each item is included in her AGI. (Leave no cells
musickatia [10]

Answer: A. $0

B. $500

C. $8,000

D. $0

Explanation:

A. $0.

The $25,000 is a cash gift from her parents which is a cash gift from relatives and so is not included in the AGI.

B. $500

The entire amount is included in her AGI as winnings from competitions are included in AGI calculations.

C. $8,000

Alimony payments are included in AGI calculations so the whole alimony figure is to be included.

D. $0

Cash inheritance is not to be included in AGI calculations for tax purposes so the entire figure of $100,000 should not be included.

6 0
3 years ago
Sheffield Corp. had the following accounts and balances: Accounts payable $28300 Equipment $34800 Accounts receivable 4550 Land
ser-zykov [4K]

Answer:

The balance on the building account is $44,200

Explanation:

The total value of the right hand side must equal the left hand side of a balance sheet. This means the total asset must equal liability plus shareholder equity.

Total Asset                           $

Equipment                      34,800  

Accounts receivable        4,550  

Land                                34,700  

Buildings                           ?

Cash                          <u>      14,750      </u>                

                                        <u>      88,800      </u>

 

Total Liability and Equity            $

Accounts payable                     28,300  

Unearned service revenue        9,700  

Stockholder's equity               <u>  95,000    </u>

 Total Liability and Equity    <u> 133,000</u><u>      </u>            

Buildings  =  Total Liability and Equity - Total Asset  

                        =   $133,000 - $88,800 = $44,200

The balance on the building account is $44,200

6 0
3 years ago
When bonds are issued at their face amount, the journal entry will include a __________ to __________.
Eva8 [605]
D. Credit; bonds payable
3 0
2 years ago
Cape Corp. will pay a dividend of $3.60 next year. The company has stated that it will maintain a constant growth rate of 5 perc
victus00 [196]

Answer:

$30

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

$3.6 / (0.17 - 0.05)

$3.60 / 0.12  = $30

6 0
2 years ago
Marilyn, Bob, and Carl all believe a certain defendant is probably guilty and should be sentenced. Individually their recommenda
bazaltina [42]

Answer:

Explanation:

Group polarization is a concept in social psychology where the decision made by a group of people is more extreme to the decision made by the individual members of the group.

The members of the group recommended 3,5,7 years as prison sentence individually but 10 years together. 10 years is more extreme when compared to the sentences recommended individually.

I hope my answer helps you.

5 0
3 years ago
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