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Mars2501 [29]
3 years ago
7

You have bought a house today at the price of $500,000. In the next two years, you will get a rent of $50,000 each year. In year

3, there is no rent income but you will sell the house at the price of $800,000. Suppose the discount rate (interest rate) is always 10% each year. What is the present value at time zero for the rent income at year 1
Business
1 answer:
Illusion [34]3 years ago
6 0

Answer:

Present Value= $45,454.55

Explanation:

Giving the following information:

You will get a rent of $50,000 each year.

The discount rate is 10%.

To calculate the present value at time zero of the first rent, we need to use the following formula:

PV= FV/(1+i)^n

PV= 50,000/(1.10)= $45,454.55

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Answer:

B) credit tenants

Explanation:

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6 0
3 years ago
M10-14 Analyzing the Impact of Transactions on the Debt-to-Assets Ratio [LO 10-5] BSO, Inc., has assets of $600,000 and liabilit
Gnom [1K]

Answer:

The each transaction affecting or not the debt to assets ratio is given below;

1-Purchased inventory of$20,000 on credit

2-Paid accounts payable amount of $50,000

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4-Borrowed $250,000 from a local bank

Explanation:

1-Debt/Total Assets=470,000/620,000=.76 it will increase the ratio

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5 0
3 years ago
A foreign currency ___________ is a contract giving the purchaser (the buyer) the right, but not the obligation, to buy or sell
Vera_Pavlovna [14]

Answer:

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Explanation:

As the name implies, an option refers to the right that is given to a potential buyer of capital goods to exercise currency trading within a specified time and amount. To carry out this process, an in-depth study must be carried out in order to make the best investment decision, for the benefit of both parties.

For its part, the price of the premium or option refers to the amount paid by the buyer in order to exercise the legitimate right over the capital asset. The premium corresponds to the value paid in excess and that represents a higher value for the seller within market estimates.

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3 years ago
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Although both involve consumers, Marketing research is concerned specifically about marketing processes, such as advertising effectiveness and salesforce effectiveness, while market research is concerned specifically with markets and distribution.

Explanation:

6 0
2 years ago
Category killers compete primarily on the basis of a. low prices and enormous product availability. b. enormous product selectio
kumpel [21]

Answer:

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