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FromTheMoon [43]
4 years ago
8

Professional Properties is considering remodeling the office building it leases to Heartland Insurance. The remodeling costs are

estimated at $2.8 million. If the building is remodeled, Heartland Insurance has agreed to pay an additional $820,000 a year in rent for the next five years. The discount rate is 12.5 percent. What is the benefit of the remodeling project to Professional Properties?
Business
1 answer:
ratelena [41]4 years ago
8 0

Answer:

$119,666

Explanation:

The benefit of remodelling can be calculated using the net present value.

The net present value is the present value of after tax cash flows minus the cost of an investment.

The net present value can be calculated using a financial calculator.

Cash flow for year 0 =  $-2.8 million

Cash flow each year from year one to year five = $820,000

I = 12.5%

NPV = $119,666

The benefit of the renovation exceeds its cost so the renovation should be carried out.

I hope my answer helps you.

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Nadusha1986 [10]

Over the past century, real GDP per person in u. s. has grown about <u>2</u> percent per year, which means it doubles about every <u>35</u> years.

GDP measures the monetary value of final goods and services—that is, the ones that might be sold with the aid of the final consumer—produced in a country in a given time frame (say 1 / 4 or 12 months). It counts all the output generated inside the borders of a country.

Gross home product is the economic degree of the marketplace price of all the final items and services produced in a selected term by using nations. because of its complicated and subjective nature, this degree is regularly revised before being taken into consideration as a dependable indicator.

GDP may be calculated by using adding up all of the cash spent by using purchasers, businesses, and the authorities in a given length. it could additionally be calculated by including up all of the money obtained by way of all the contributors inside the financial system. In either case, the range is an estimate of "nominal GDP."

Learn more about GDP here brainly.com/question/8342414

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6 0
2 years ago
Cost of a Fixed Asset Borges Inc. recently purchased land to use for the construction of its new manufacturing facility and incu
tamaranim1 [39]

Answer:

$152,600

Explanation:

The computation of the cost of the land is shown below:

Cost of the land = Purchase price + real estate commissions + delinquent property taxes + closing costs + clearing and grading of the land

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7 0
4 years ago
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The answer is b or a but I mean it both means the same thing, if this is on Plato it's a
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What ways can land contribute to production
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Answer:

yes land can contribute to production.

Land is the only place to grow crops and to do farming. if we do good to land by using organic fertilizers then production will also be good. so land is the only source for the production of crops as land provides minerals and vitamins to the plants for the production of crops.

8 0
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Answer:

b. website layout

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The email marketing is a technique in which we can send one message to large audience in the same time. It helps in saving cost and time

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