1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kumpel [21]
4 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]4 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.

You might be interested in
Match the tasks with the professionals who would complete them.
SVEN [57.7K]

Answer: The correct answers are,

A)Civil Engineer 5)designs and oversees a large construction

process

B)Logging Equipment Manager 6categorizes trees based

on their knot size, straightness, and other characteristics

C)Energy Auditor 4)reduces the amount of energy homeowners and companies use

Explanation:

4 0
3 years ago
Coronado Industries constructed a building at a cost of $30150000. Weighted-average accumulated expenditures were $12500000, act
Neko [114]

Answer:

$709,100

Explanation:

Cost of the building = $30150000

Average accumulated expenditures = $12500000

Actual interest = $1230000

Avoidable interest =  $604000

Salvage value = $2390000

Useful life = 40 years

Depreciation expense for the first full year:

= ((Cost of the building + Avoidable interest) - Salvage value) / Useful life

= [($30150000 + $604000) - $2390000] / 40

= [$30754000 - $2390000] / 40

= $28364000 / 40

= $709,100

So, the depreciation expense for the first full year using the straight-line method is $709,100.

3 0
3 years ago
In a study to investigate the effects of alcohol on reflexes, some students were given three bottles of beer and some were given
Hatshy [7]
Idk I’m so clueless what are the choices
3 0
3 years ago
Diego feels he has achieved some measure of respect as a cosmetic surgeon. Now, Diego focuses on being the best he can be. Which
amm1812

Diego is trying to focus and meet his self-actualization needs.

<h3>What is Maslow's Hierarchy of Needs?</h3>

Abraham Maslow's theory of Hierarchical needs explains that people are driven to meet fundamental wants before moving on to more complex requirements.

His theory emphasizes five hierarchical needs, these are:

  • Physiological needs
  • Security and safety needs
  • Social Needs
  • Esteem Needs
  • Self Actualization needs

Therefore, based on the fact that Diego is concerned about his own personal growth and focusing on his career, we can conclude that Diego is trying to focus and meet his self-actualization needs.

Learn more about Maslow's Hierarchy of Needs here:

brainly.com/question/1785981

4 0
2 years ago
What is Internal information ?​
kiruha [24]

Answer:

Internal information is any information, oral or recorded in electronic or paper format, maintained by the District or used by the District or its employees.

Explanation:

<em>H</em><em>O</em><em>P</em><em>E</em><em> </em><em>T</em><em>H</em><em>I</em><em>S</em><em> </em><em>H</em><em>E</em><em>L</em><em>P</em><em>S</em><em> </em><em>A</em><em>N</em><em>D</em><em> </em><em>H</em><em>A</em><em>V</em><em>E</em><em> </em><em>A</em><em> </em><em>N</em><em>I</em><em>C</em><em>E</em><em> </em><em>D</em><em>A</em><em>Y</em><em> </em><em><</em><em>3</em>

4 0
2 years ago
Other questions:
  • Which of the following is not one of the five observed ways in which managerial behavior differs from the classical description
    9·1 answer
  • If an employer does not offer a retirement plan, what might be another way to save for retirement
    14·1 answer
  • If an owner takes a property off the market for a definite period of time in exchange for some consideration, but grants the rig
    8·1 answer
  • Phillips Equipment has 80,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 7.5%. T
    9·1 answer
  • Long-run adjustments in purely competitive markets primarily take the form of _________.
    14·1 answer
  • Pathology studies the<br> a<br> and effect of disease.
    7·1 answer
  • Q 6.3: Hanson Technology is a computer manufacturer. For years, Hanson has relied on the JIT inventory method. However, due to n
    15·1 answer
  • Wren Pork Company uses the value basis of allocating joint costs in its production of pork products. Relevant information for th
    11·1 answer
  • For the same example as (1), what is the markup if the price is $89 and the cost is $72? Please round your answer to the nearest
    14·1 answer
  • The Federal Reserve helps protect people who borrow money to pay an expense by
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!