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VashaNatasha [74]
3 years ago
10

A property produces a first year NOI of $100,000 which is expected to grow by 2% per year. If the property is expected to be sol

d in year 10, what is the expected sale price based on a terminal capitalization rate of 9.5% applied to the eleventh year NOI?
Business
1 answer:
Ahat [919]3 years ago
5 0

Answer:

the expected sale price based on a terminal capitalization rate is $1283152

Explanation:

The NOI (net operating income) is used in the estimation of the profitability in real estate investment.

The first year NOI of a property is $100000 and it is expected to grow by 2% (0.02) per year and to be sold in next ten years (n = 10 years).

r = 100% + 2% = 102% = 1.02

After ten years, the NOI = first year NOI × r^n = $100000 × (1.02)¹⁰ = $121899.442

The terminal capitalization rate is 9.5%. Therefore the expected sale price based on a terminal capitalization rate = $121899.442 / 9.5% = $121899.442 / 0.095 = $1283152

the expected sale price based on a terminal capitalization rate is $1283152

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andrezito [222]

Answer:

Marketing channels.

Explanation:

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The Gluten Free Bars (GFB) are the vegan bars created by Marshall and Elliot Rader (brothers). The brothers created the GFB in 2010, and heralded the gluten-free industry.

<u>To marketize their products, they used the element of marketing channels. They first reached to their possible customers by shopping their products to independent coffee shops, then to grocery and natural food stores. They used the channels of independent coffee shops, grocery and natural food stores to marketize their products and services to their possible customers.</u>

Thus the correct answer is that they used marketing channels aspect of marketing.

6 0
3 years ago
The Pearsons decided to beautify their home by investing in a professional interior design. In the process, they dealt with empl
Romashka [77]

There are a lot of ways to beautify the home. The people required to provide the landscaping services are considered  is <u>Inputs</u>.

<h3>What is a landscaping person? </h3>
  • A landscaper is known to be a person who earns a living by working on the earth and water so that it can become more beautiful or more aesthetically pleasing.

They are often trained in landscaping as they work to improve the existing layout and as such they are known to be <u>input </u>as they are contributing something to the beauty of the landscape.

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8 0
2 years ago
Consider the game in extensive form above. In the backward induction solution to this game Player 1 plays strategy and Player 2
Brrunno [24]

Answer:

answer can be seen in the attached file

Explanation:

Consider the game in extensive form above. In the backward induction solution to this game Player 1 plays strategy and Player 2 plays strategy (Please, label Player 1's strategies by A, B, and C, and Player 2's strategies as df, dg, ef, and so forth)

What is Game Theory?

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3 0
3 years ago
Which of the following is an advantage of newspaper advertising?
Furkat [3]

Answer: Option A  

                             

Explanation: One of the major advantage of using newspaper is that an individual can reach to the prospects on such demo-graphical areas where other mediums might not work effectively and efficiently.

If an entity wants to advertise its product to smaller audiences at living in difficult places then it should go for newspaper. Also newspaper is the most common medium as one might not watch tv or listen radio daily but most of the individuals read newspaper everyday at morning.

Hence the correct option is A .

4 0
3 years ago
Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one mor
joja [24]

Answer:

A.$12,000

B.$8000

C.MRPL/PL = 3

MRPK/PK =2

D) Since each of the above calculated ratios are more than one, therefore adding additional worker or tractor will increase the total revenue for each of the dollar spent.

Explanation:

(a) The Marginal Revenue Product of Labor (MRPL) can said to be the additional revenue generated when an additional worker is employed.

$66,000 - $54,000 = $12,000

Thus, MRPL is 12,000

b) Marginal revenue product of capital is

( 62000 - 54000)= $8000

c) MRPL/PL = 12000/ 4000= 3

MRPK/PK = 8000/4000=2

Therefore Since these two ratios are not equal it means the firm is not using the least cost combination of inputs.

d) Since each of the above calculated ratios are more than one, therefore adding additional worker or tractor will increase the total revenue for each of the dollar spent.

5 0
3 years ago
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