Answer:
It is True that potential investors, in analyzing the profit potential for a distressed property, generally consider a financial framework including the acquisition phase, the holding period phase and the disposition phase
Explanation:
Acquisition is the process of gaining ownership or control of a real estate. It is usually sold by brokers to investors.
In the case of distressed property, there is always a holding period
Holding periods are usually targeted at 2-5 years, during which the asset that has been acquired is renovated.
The end of the holding period transitions to the beginning of the disposition phase.
During the disposition phase, the real estate which could be a distressed building is being disposed or handed over to the owners. At this phase, complete documentation is done and handed to both parties to endorse.
A comprehensive financial framework detailing all the expenditure across the acquisition phase, holding period and the disposition phase must be in place in order to get an accurate calculation of expenditure data to used in analyzing the profit potential of a property.
PHASE 1: Accumulation
This period begins when you enter the workforce and begin setting aside funds for later in your life, and ends when you actually retire. If your employer offers 401(k), 403(b), or 457(b) plans, have you signed up and are you contributing the maximum allowed? Did you know that the "new normal" requires retirement savings rates for most Americans to exceed 10 percent? If self-employed, are you shortchanging yourself on Social Security in order to reap tax deductions?
PHASE 2: Pre-Retirement
This phase occurs during the final years of the accumulation phase and should begin when you reach 50 years old or are 15 years away from retiring, whichever happens first. Now is the time to get your plan in place, making sure your finances are lined up correctly for retirement day so nothing will be left to chance. If you work for a company with a benefits specialist, arrange an appointment to become informed about the various ways you can convert your employer retirement savings into a stream of income or an IRA. Consider using a tool known as "scenario planning." Start learning about Social Security and your options for beginning to receive retirement benefits. Familiarize yourself with the basics of Medicare.
PHASE 3: Early-Retirement
This phase lasts from the day you retire until you are 70 years old. (For those who do not plan to retire until well into their 70s, some tasks in this phase may occur later.) A key purpose of this phase is to create a clear communication channel with your family so information can be shared, questions asked and answered, and decisions made in a calm, supportive way. It's also the time to assess how well your finances are working now that you are using your retirement savings. Fine-tune your income and expense projections, taking into consideration how you will meet minimum distribution requirements from your tax-deferred accounts.
PHASE 4: Mid-Retirement
This phase begins at age 70 and lasts as long as you are able-bodied and high-functioning. Despite your good health, begin looking at what steps you would like your family to take should your condition decline significantly. In most cases your ability to make all your own decisions, care for yourself, engage with the world on your terms, and manage your affairs does not vanish in a split second. It takes courage to dive into a conversation about giving up and transferring control.
PHASE 5: Late-Retirement
This phase begins when your health has taken a turn for the worse and there is little likelihood of it being fully restored. You require significant help to function day to day. The hope is that by this point all the planning done in prior years makes this transition as manageable and life-affirming as possible.
Answer:
$7.77
Explanation:
The answer would be the difference between compound and simple interest
Simple interest = principal x time x interest
$1,410 x 0.03 x 4 = $169.20
Compound interest = future value - present value
future value = Principal ( 1 + interest)^n
$1,410 ( 1.03)^4 = $1586.96
$1586.96 -$1,410 = $176.97
Difference = $176.97 - $169.20 = $7.77
You can create a budget plan to cut out the risks of any unneeded financial expenses and to know that you should pay for things you need before you pay for unneeded items.
Answer:
$2,430F
Explanation:
The formulae for labor rate variance is given as (Actual rate - Standard rate) × Actual hours worked.
Labor rate variance = (Actual rate - Standard rate) × Actual hours worked
Given that;
Actual rate = Actual total labor cost ÷ Actual hours worked
= $119,880 ÷ 8,100
= $14.8 per hour
Standard rate = $15.10 per hour
Actual hours worked = 8,100
Labor rate variance = ($14.8 - $15.10) × 8,100
Labor rate variance $2,430F
