Answer:
BOB should offer 4,583,333 for the building if he wants the cap rate to be the same as the similar building.
Explanation:
The cap Rate is used to to calculate how much income a building or a property generates compared to its price it is bought at, so in order to find the cap rate we divide the annual NOI by it's price. In this question we will have to calculate the cap rate of the similar building which was sold for 6,000,000 and then use that cap rate to find what should the price of the building be that BOB wants to buy.
Cap rate = Annual NOI/Price
Cap rate of similar building = 360,000/6,000,000=0.06=6%
Now we will substitute 6% in the formula to find the price of the building BOB wants to buy.
0.06=275,00/Price
Price = 275,000/0.06=4,583,333
Answer:
c. 3 loaves of bread for Andy and 1 loaf of bread for John.
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
For Andy, the opportunity cost of producing 1 pound of butter is = 24 / 8 = 3
For John, the opportunity cost of producing one pound of butter is 8/8=1
I hope my answer helps you
Answer:
Explanation:
The journal entry to record the cost of merchandise sold is presented below:
Cost of merchandise sold A/c Dr XXXXX
To Merchandise inventory A/c XXXXX
(Being cost of merchandise sold is recorded)
Simply we debited the Cost of merchandise sold account and credited the Merchandise inventory account instead of the inventory account
When a firm pursues a(n) localization strategy, it sells the same products or services in both domestic and foreign markets.
Multinationals choose from four basic international strategies: (1) international, (2) multinational, (3) global, and (4) transnational. These strategies differ between the two strains. 1) Focus on low cost and efficiency, and 2) Respond to local culture and needs.
A company can obtain its three main benefits by successfully deploying a foreign markets strategy: (1) increased market size, (2) economies of scale and learning, and (3) location advantages. I can. Greater market size is achieved by expanding beyond the company's home country.
Multinational Corporation chooses from their three basic international strategies: (1) multidomestic, (2) Global, and (3) Transnational. These strategies differ in their focus on achieving global efficiencies and addressing local needs.
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