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Naddika [18.5K]
3 years ago
14

You own a house that you rent for $1,675 per month. The maintenance expenses on the house average $315 per month. The house cost

$242,000 when you purchased it 4 years ago. A recent appraisal on the house valued it at $264,000. If you sell the house you will incur $21,120 in real estate fees. The annual property taxes are $3,650. You are deciding whether to sell the house or convert it for your own use as a professional office. What value should you place on this house when analyzing the option of using it as a professional office?
Business
2 answers:
AysviL [449]3 years ago
8 0

Answer:

$242,880

Explanation:

Value of House = Appraisal value - Expenses

Appraisal value $264,000

Expenses $21,120

Hence,

$264,000-$21,120

=$242,880

Therefore the value that should you place on this house when analyzing the option of using it as a professional office will be $242,880

Trava [24]3 years ago
7 0

Answer:

The value that should be placed when analyzing the option of using the house as a professional office is $242,880

Explanation:

In calculating cash flow of a project, opportunity cost is very important hence be made part of the cash flow

Incremental cash flow = Appraisal on the house - Real estate fees

=$264,000 - $21,120

= $242,880

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3 years ago
Josh is convinced that subgroups exist within his company's current customer base. Further, he believes that these different gro
kaheart [24]

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3 years ago
Failure to address the three questions of economics will have what kind of impact on an economy?
Setler [38]

Answer:

It will have no consequence.

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Explanation:

7 0
2 years ago
Ed and Marta are paid $3,250 after taxes every month. Monthly expenses include $1,200 wo''""'" on housing and utilities, $550 fo
Digiron [165]

Answer:

Savings Ratio = 6.15%

Explanation:

  • To calculate the savings ratio, income statement should be prepared at first.
  1. You should find the Income statement in the picture attached

According to the Income statement Ed and Marta has $200 available for savings after taking out all the expenses.

  • After preparing the Income Statement, now we can calculate the savings ratio by using the formula mentioned below.

Formula: Savings ratio =  \frac{Income available for saving}{Income available for living expenditure\\}

After applying the formula we get:  Savings ratio = \frac{200}{3250}= 0.0615 = 6.15%

Interpretation: As the ratio is about how much income you have for the savings in percentage. It is a great tool to determine weather you can save more or are savings enough, which in turn will help you in future decision making.

Ed and Marta's savings ratio is about 6% which is enough for them and means that they are saving much, although it's not even near to favorable percentage which is 10% but considering their will power to save even 6% is good. Further they should compare this to past savings ratio to get the idea of where they are standing at right now. Even better would be comparing this ratio with their desired savings if they have any in their mind.

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3 years ago
Today's US banking system ensures that if everybody who has money on deposit in the banks
zheka24 [161]

Answer:

False

Explanation:

Not all depositors will get their cash. The FED, which is the body that regulates commercial banks, requires the banks to keep only a small percentage of customers deposits in their custody. The percentage maintained in the banks is known as the reserve.  The percentage of the reserves requirement varies with time.

If all depositors decide to withdraw at once, they can not get their money as only the reserve amount will be available in the banks. Commercial banks usually lend out the rest of the customers' deposits to make profits.

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