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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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tone Company produces carrying cases for CDs. It has compiled the following information for the month of June: Physical UnitsPer
Svetlanka [38]

Answer:

TOTAL 258,000

TOTAL 258,000

Explanation:

Calculation to reconcile the number of physical units Using the FIFO method

PHYSICAL UNITS

Beginning Inventory 74,000

Units Started 184,000

TOTAL 258,000

PHYSICAL UNITS

Units Completed 164,000

(258,000-94,000)

Ending Inventory 94,000

TOTAL 258,000

Therefore Using the FIFO method to reconcile the number of physical units will give us 258,000 and 258,000

4 0
2 years ago
Changes in the prices of key commodities have a significant impact on a company's bottom line. For virtually all companies, the
Anna11 [10]

Answer:

Explanation:

A) Energy can be both a fixed cost and a variable cost for a company. This is due to the sense that energy in the form of fixed electricity bill even when no production takes place (telephone bill), a fixed cost and electricity bill when production takes place would be a variable cost

B) An increment in fixed cost will shift the ATC curve to the right while the MC curve would remain the same because MC is the change in variable cost as output increases and is not related to fixed cost.

C) Corn cost is a variable cost for ethanol producer as each unit of corn is used to produce ethanol and thus use of corn is reliant upon how much ethanol is produced. This makes corn a variable input dependent on the production of output, therefore, the cost of corn is variable.

D) An increment in the variable cost will shift the ATC curve to the right and individual MC curve to the right.

5 0
3 years ago
Jan is risk-averse, but wants to earn the best rate of return in less than two years. which investment would most likely meet ja
oksian1 [2.3K]
Jan needs bonds-based mutual funds as an investment in which he wants to earn the best rate of return. It mostly consists of individual bonds wherein it is compiled in a portfolio. A bond fund when then produced incomes from underlying bonds measured in incomes. 
5 0
3 years ago
Can you Describe the system that critics of mining towns referred to as wage slavery? Why did critics adopt this name?
telo118 [61]

ANSWERS: There was a format called Company Town where the company would virtually own and control the entire town including daily need item stores. Workers were lured with attractive wages and accommodation. But, the wages were paid in 'Scrips' which were company printed currency meant to be spent in the stores owned by the company owned and controlled stores inside the company town. This led to the employees getting dependent on employers and their personal freedom and space getting interfered by employers. This relation led to the term 'Wage Slavery'. This practice was continued in mining town till 1960s whereas the concept of company town ended in the 1920s.

7 0
3 years ago
Read 2 more answers
Poskey Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following
MrRa [10]

Answer:

\left[\begin{array}{cccccc}&Cost&Assembly&Setting Up&Other&Total\\wages&349,000&226,850&69,800&52,350&349,000\\Depreciation&290,000&101,500&58,000&130,500&290,000&Utilities&199,000&29,850&149,250&19,900&199,000&Total&838,000&358,200&277,050&202,750&838,000&\end{array}\right]

Explanation:

We mulitply each line by the stated percent of each activity

<u>for example</u>

Setting Up % x Utilities= Utilities cost assigned to setting up

199,000x 75% = 149,250

Assembly % Depreciation= Depreciation cost assigned to assembly

35% x 290,000 = 101,500

This process must be done to assign each portion of cost.

6 0
3 years ago
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