Answer: 10-20%
Explanation: A contingency factor is anything you can't predict accurately or forecast in the future. In order to cover currency fluctuations when services are done in local currency, contingency cost of 10-20% over basic cost estimate is advisable.
The problem is missing some details. But here is the complete solution. Now consider the second alternative-5 annual payments of $2,000 each. Assume that the payments are made at the starting of each year.
N = 5
I = 10.25
---> this is computed by: [(1+i/n)^n] -1I = <span>[(1+10/2)^2] -1 = 10.25
</span>PV = O
PMT = -2,000
Using a financial calculator...
Future Value = 13, 528.90
Answer:
D. The IRR is about 22.80%
Explanation:
If we use excel instead of trial and error method, it is easy to determine the Internal rate of return. As there is no cost of capital, it is challenging to determine IRR through the trial and error method.
The following image shows the IRR of this project is 22.80%.
It should be noted that Under the terms of a net lease, a commercial tenant would usually be responsible for paying all of the following property expenses except mortgage debt.
<h3>What is net lease ?</h3>
net lease can be regarded as contractual agreement where the portion of a tax is been paid by lessee as well as maintenance costs for a property in addition to rent.
Therefore, commercial tenant would usually be responsible for paying extended coverage insurance.
Learn more about net lease at:
brainly.com/question/24858866
Answer:
The correct answer is option b.
Explanation:
A pure competition is theoretical market structure with very large number of buyers and sellers, identical or homogenous products and freedom of entry and exit.
It is not applicable to the real world and is purely theoretical.
The perfect competition, on the other hand, is a similar market structure but it the consumers have perfect knowledge about the market.