Answer:
the present vlaue of the ledased property = $251,298
Explanation:
the free market value in 10 years = ($27,500 x (1 + 2%)¹⁰) / 10% = $335,223
free cash flows year 1 - 9 = $24,000
free cash flow year 10 = $359,223
discoutn rate = 11.5%
using a financial calculator, the present value of the property = $251,298
There isn’t any safety procedures on here and it says which of the following
Answer:
Demand for home repair and building supply is INCOME ELASTIC
Explanation:
One reason why many ethical home repair and building supply businesses continue to charge pre-hurricane prices to their customers, even though due to the huge increase in demand they could charge much more. These firms probably recognize that demand for home repair and building supply is INCOME ELASTIC.
Although there was no direct fall in income however the loss of property means a negative impact on already earned income. Hence charging higher prices because of higher demand will be a misunderstanding of the income elasticity of demand.
This is an example of insider trading, which is using private company data or information to make improper gains.