Answer:
<em>Value $ 256,250</em>
<em>rounding against nearest 1,000 dollar: 256,000</em>
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Explanation:
From the gross income we subtract the expenses and vanacy losses.
40,000 gross income - 3,500 vacancy - 16,000 operating expense
20,500 net
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Now, we solve for the present value of a perpetuity given the capitalziation rate of 8%
$ 20,500 / 0.08 = <em>$ 256,250</em>
I don't really know of Bill Smith but I know Adam
Smith's best - known ideas formed the basis of economic theory , including the invisible hand theory ( the idea that free - markets coordinate themselves ) , the division of labor ( the idea that people should specialize in specific tasks ) , and the measurement of economic activity ( Gross Domestic Product ) .
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This expanding panic and rising flood of withdrawals is called Bank Run.
<u>Explanation: </u>
Bank run means many customers of the bank withdraw their deposits due to the fear that the bank might become insolvent. When many customers withdraw their funds then the bank might not be able to meet the withdrawals with the available funds.
This further increases the risk of the bank to default when all the customers withdraw their deposits. This is because the banks hold only little amount as cash in hand while the rest of the bank's wealth is invested in long term assets.
Answer:
exists when a production or consumption of a product results in a coast of third party
True, Is the correct answer.
