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kumpel [21]
3 years ago
11

James purchased a commercial property at a 7.5% cap rate. The previous owner agreed to finance the deal at 8%. Why may James ele

ct not to go ahead with the financing?
Business
1 answer:
dlinn [17]3 years ago
7 0

Answer:

James will lose money, since his earnings will be lower than the interest that he must pay.

Explanation:

The capitalization (cap) rate is a ratio calculated by dividing the net operating income over the property asset value.

For example, if James is purchasing the property at $100,000, his net earning will be $7,500 per year (cap rate of 7.5%), but he will have to $8,000 in interests for the property. The interests are higher than the earnings, therefore the leverage is negative.

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A trip arranged by a travel professional that has at least two travel components is called _____.
enyata [817]

I believe you answer would be

adventure travel

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3 years ago
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Which of the following is a problem with information silos? a. isolated decisions b. organized processes c. decreased expense d.
Alisiya [41]
A. Isolated decisions
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3 years ago
faiz enters into a contract to buy 350 acres from grain farm to cultivate hops and open a brewery. faiz fails to make the purcha
Debora [2.8K]

Based on the fact that Falz failed to make the purchase, Grain Farm most likely has the remedy of C ) Pay the difference between contract price and market price.

<h3>What is Grain farm to do?</h3>

When a buyer (Falz) gets into an agreement to buy a land or property and fails to do so, this falls under real estate and damage.

Under real estate and damage, the buyer  would then have to pay the seller (Grain Farm) a remedy which would be the difference between the market price of the property and the contract price.

Options for this question include:

  • the amount that Faiz expected to invest in the brewery
  • a percentage of Faiz's unrealized profit.
  • the difference between the contract and market prices of the land.
  • nothing-Grain Farm still owns the land.

Find out more on contract remedy at brainly.com/question/28480342

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7 0
1 year ago
Cameron industries is purchasing a new chemical vapor depositor in order to make silicon chips. it will cost $ 4 million$4 milli
Luden [163]
On basis of straight-line depreciation method,

Yearly depreciation expense = [Cost of investment - Salvage value] / life

In the current case, salvage vale is assumed to be $0 and the life is 7 years.

Total investment = $4 m + $ (15,000/1,000,000) m + $3 m = $7.015 m

Therefore,
Yearly depreciation expense = 7.015/7 ≈ $1.002 m
8 0
3 years ago
Econ please helppp :(((((
Lelechka [254]

Answer:

Pure competition

Explanation:

Pure competition refers to an ideal market with very many suppliers selling an identical product. Because the sellers are many, none of them can influence the price. Pure competition is also the perfect competition.  Other characteristics of perfect competition include.

  1. easy to enter and exit the market since there are no trade barriers
  2. All sellers sell a homogeneous product
  3. all sellers are price takers
  4. There are many buyers.
  5. Buyers have sufficient knowledge of prices and suppliers.
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3 years ago
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