Answer:
Based on the calculation made, the indicated value is $3,889.86014
Explanation:
Using direct capitalization method, indicated value can be calculated using the formula below:
Value = Annual net operating income NOI/Capitalization rate
= $44500/11.44%
Value= $3,889.86014
Based on the calculation made above, the indicated value is $3,889.86014.
In a traditional economy option C
Answer:
the process of deciding which project to do to increase the firm’s value.
Explanation:
Some of the Capital budgeting methods include:
1. internal rate of return- internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
2. Cash pay back period- it is the period it takes to recover the amount invested in a project from its cummulative cash flows.
3. Net present value: net present value is the present value of after tax cash flows from an investment less the amount invested.
I hope my answer helps you
Answer:
true
Explanation:
yes United states has market economies
Answer:
3.612%
Explanation:
The computation of portfolio return is shown below:-
Portfolio return = (Return of Y × Weight of Y) + (Return of R × Weight of R)
+ (Return of C × Weight of C)
= (4.40% × 40%) + (4.93% × 40%) + (-0.60% × 40%)
= 1.76% + 1.972% - 0.12%
= 3.612%
Therefore for computing the portfolio return we simply applied the above formula.
