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Snowcat [4.5K]
3 years ago
9

use the cost index method to estimate the current construction cost for a building equivalent to one constructed in 1980 at a co

st of $2.7 million. according to the engineering news-record, the 1980 average building cost index was 1941. suppose that the current year building cost index has been estimated at 3620.
Business
1 answer:
oksano4ka [1.4K]3 years ago
6 0

Answer:

To determine the current equivalent cost of a construction built in 1980 whose cost was $ 2.7 million, we must establish the relationship between the price index for that year, comparing it with that of the current year.

Taking into account that the average cost index for 1980 was 1941, and that said value is currently 3620, we can note that there was a significant increase in costs. Since 3620/1941 = 1.86, to determine the current cost of construction we must multiply its cost by 1.86.

So, since 2.7 x 1.86 = 5.022, we can establish that the equivalent cost at current prices of said building would have been $ 5,022,000.

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Consider a corporate bond with a $1000 face value, 8% coupon with semiannual coupon payments, 7 years until maturity, and a YTM
serious [3.7K]

Answer:

$961.42

Explanation:

firstly, we calculate the clean clean price below:

FV= 1,000

PMT= 40 (80 / 2)

I= 4.5 (9 / 2)

N= 14 (7 × 2)

Thus, PV= 948.89

Accrued Interest = coupon × (days since last payment/days in current coupon period)= 40 × (57 / 182) = 12.53

conclusively, dirty price = 948.89 + 12.53 = 961.42

3 0
3 years ago
In anonymous surveys, on average people rate themselves as "above average" with regard to characteristics such as intelligence,
BabaBlast [244]

Answer:

A. Overconfidence effect

Explanation:

Overconfidence effect is a kind of bias whereby individual's subjective confidence in their own abilities is greater than the objective or actual performance accuracy of those abilities. During surveys, respondents usually have this kind of bias. An example is the one stated in the question whereby average people tend to fill that they are "above average" on certain features like intelligence and perceptiveness. It is a common bias as individuals usually assume that they are better than their real ability by overestimating those abilities inherently.

8 0
3 years ago
The industry-low, industry-average, and industry-high cost benchmarks on p.6 of each issue of the Footwear industry report
pashok25 [27]
<span>You would look at the different costs on the industry report. This can tel you a lot. Averages are when you take a sum of all of the different areas and then divide that by how many areas there were. This lets you know roughly how the industry is doing.</span>
4 0
3 years ago
How does the market price of a good in a monopoly market compare with the market price of the same good in a perfectly competiti
Marysya12 [62]
<span>In a monopoly, prices are usually higher
 because there's no competition,
 whereas in a competitive market items which  are not priced orderly may never sell
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6 0
3 years ago
Read 2 more answers
. El Capitan Foods has a capital structure of 36% debt and 64% equity, its tax rate is 35%, and its beta (leveraged) is 1.4. Bas
almond37 [142]

Answer:

The firm's unleveraged beta is 1.0251

Explanation:

Hamada's equation  is used to separate the financial risk of a levered firm from its business risk.

The Hamada equation:

Bu= Bl/(1 + (1 − T)(D/E))

Bl = 1.4

wd = 0.36

Tax rate = 35%

D/E = wd / (1 – wd) = 0.5625 = 56.25%

= 1.4/ (1+(1-0.35)(0.5625))

=1.4/ 1 + (0.65)(0.5625)

=1.4/1.36

= 1.0251

5 0
3 years ago
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