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charle [14.2K]
3 years ago
8

Property A is a self storage facility with a going cap rate of 6.0%. Property B is an office building with a going cap rate of 6

.0%. If both properties produce the same NOI, which property is worth more...?
Business
1 answer:
hjlf3 years ago
3 0

Answer:

Worth of both the property will be same.

Explanation:

Data provided in the question:

Cap rate for the Property A which is a self storage capacity = 6%

Cap rate for the Property B which is an office building = 6%

NOI of both the buildings are equal

Now,

Mathematically,

Cap rate is given as = [ NOI ] ÷ [ Worth of the property ]

or

Worth of the property =  [ NOI ] ÷ [ Cap rate ]

Since, the NOI and cap rate for both the buildings are same

Therefore,

Worth of both the property will be same.

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Crane Company purchased land as a factory site for $1300000. Crane paid $110000 to tear down two buildings on the land. Salvage
Marizza181 [45]

Answer:

a. $‭1,420,000‬

b.  $‭4,514,800‬

Explanation:

When it comes to fixed assets, all costs that directly helped make the asset available for use are to be capitalized.

Cost of Land

= Purchase Value + Cost Incurred to Tear Down 2 Buildings + Legal Fees + Title Insurance Cost + Assessment Cost - Salvage

= 1,300,000 + 110,000 + 5,000 + 3,500 + 9,500 - 8,000

= $‭1,420,000‬

Cost of Building

= Architect's Fees + Liability Insurance Cost + Excavation Cost + Contractor's Payment + Interest Cost

= 46,000 + 3,800 + 15,000 + 4,200,000 + 250,000

= $‭4,514,800‬

4 0
3 years ago
In response to the new employee end of shift policy Brianna proposes that Ollie pay its employees on their breaks instead of mak
andrew11 [14]

Answer:

B. personal appeals

Explanation:

Personal appeals is a tactic used to influence the opinions of others towards a particular purpose,it is usually done to help another person or group of persons to get favoured by another person.

Brianna is most likely adopting the use the personal appeals to influence the opinions of Ollie concerning the payment time for the workers of Ollie.

7 0
3 years ago
The opportunity cost of an item is a. what you give up to get that item. b. usually less than the dollar value of the item. c. t
Jobisdone [24]

Answer: a

Explanation:

Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another. While financial reports do not show opportunity cost, business owners can use it to make educated decisions when they have multiple options before them.

Because by definition they are unseen, opportunity costs can be easily overlooked if one is not careful. Understanding the potential missed opportunities foregone by choosing one investment over another allows for better decision-making.

Opportunity cost analysis also plays a crucial role in determining a business's capital structure. While both debt and equity require expense to compensate lenders and shareholders for the risk of investment, each also carries an opportunity cost. Funds used to make payments on loans, for example, are not being invested in stocks or bonds, which offer the potential for investment income. The company must decide if the expansion made by the leveraging power of debt will generate greater profits than it could make through investments.

6 0
3 years ago
In order to establish criminal liability of the directors of a corporation:
Y_Kistochka [10]

Answer:

a prosecutor must establish that the directors had criminal intent

7 0
3 years ago
Waterway Industries purchased machinery for $905000 on January 1, 2017. Straight-line depreciation has been recorded based on a
BlackZzzverrR [31]

Answer:

$ 178,733  

Explanation:

From January 2017 when the machinery was acquired till May 1 2021  when it disposed of, depreciation would have been charged for full years 2017,2018,2019 and 2020 while 2021 depreciation would only be for 4 months.

Annual depreciation=cost-salvage value/ useful life

annual depreciation=($905000-$52000)/5=$170,600  

depreciation for 4 years=$170,600*4=$682,400

depreciation for 4 months=$170,600*4/12=$56,867  

accumulated depreciation=$682,400+$56,867=$739,267  

carrying value=cost-accumulated depreciation= $905000- $739,267 =$165,733  

gain on disposal=cash proceeds-carrying value

$13000=cash proceeds-$165,733  

cash proceeds=$165,733 +$13000=$ 178,733  

4 0
3 years ago
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