1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ksju [112]
2 years ago
11

The first-year NOI for an office building is $150,000. A lender is willing to provide financing up to a 1.5 debt-coverage ratio.

If the mortgage has a 5-year maturity, 25-year amortization period, and 6% rate of interest, what is the maximum loan size that you can obtain assuming that payments are made on an annual basis?
Business
1 answer:
Hoochie [10]2 years ago
5 0

Answer:

the maximum loan size is $1,278,335.62

Explanation:

The computation of the maximum loan size is as follows:

= (NOI first year ÷ debt coverage rate) × 1 ÷ (rate of interest) × (1 - 1 ÷ (1 + rate of interest)^number of years)

= ($150,000 ÷ 1.5) × 1 ÷ (6%) × (1 - 1 ÷ (1 + 6%)^(25))

= $1,278,335.62

hence, the maximum loan size is $1,278,335.62

We simply applied the above formula

You might be interested in
6. If two portfolios are well-diversified with a risk-free rate of 3.11% and the S&P market return for the past year has bee
SSSSS [86.1K]

Answer:

Answer 1---- D. none of the above

Answer 2---- B. the project will delay by one day

Explanation:

See attached image

4 0
3 years ago
This image shows a receipt from a shoe purchase what is the tax rate for the community in which this purchase was made A. 6.5% B
fomenos

Answer:

Its C

Explanation:

used a sales tax calculator

3 0
3 years ago
Read 2 more answers
Which tool does the federal reserve use to control monetary policy through bank borrowing? discount rate money creation open-mar
Alina [70]

The <em>federal reserve</em> use <u>open-market operations</u> tool to control monetary policy through<em> bank borrowing.</em>

<h3>What are open-market operations?</h3>

Open market operations tend to imply the process in which the Fed buys and sells securities of the government in the <u>financial market</u> or to <u>commercial banks. </u>

Therefore, the money supply stabilizes when Fed <em>sells securities</em> that <u>decrease</u> the borrowing capacity of the banks. Similarly, when Fed <em>purchases securities</em>, the banks' borrowing capacity increases which increase the <em>money supply. </em>

Learn more about Federal reserves here:

brainly.com/question/18451428

8 0
2 years ago
For the coming year, Cleves Company anticipates a unit selling price of $100, a unit variable cost of $60, and fixed costs of $4
Alexeev081 [22]

Solution :

1. The break even sales in units is given by :

   Break even sales in units = $\frac{\text{fixed cost}}{\text{contribution per unit}}$

Where, contribution per unit = selling price per unit - variable cost per unit

The anticipated break even sales in units of Cleaves company in the coming year is :

Break even sales in units = $\frac{480,000}{40}$

Contribution per unit = $ 100 - $ 60

                                   = $ 40

So the company anticipates its breakeven sales at 12,000 units.

2. In order tot earn profit the sales generated should overcome the breakeven point. The desired profit is $240,000, the sales required to earn the desired profit can be computed using the formula :

Desired sales in units = $\frac{\text{fixed cost + desired cost}}{\text{contribution per unit}}$

                                    $=\frac{480,000+240,000}{40}$

                                    = 18,000 units

Thus, the sales in units required to earn a profit of $ 240,000 are 18,000 units.

3. The sales in excess of the breakeven point would yield a profit on the contrary the sales below the breakeven point would result in a loss.

In the given sales in dollar =  breakeven sales in units x selling price per unit

                                           = 12,000 x 100

                                           = $ 1,200,000

∴ the sales above $1,200,000 would result in a profit whereas the sales below $1,200,000 would result in loss.

The cost volume profit chart below indicates the profit, loss, breakeven at different sales levels :

Sales levels           Result

1,200,000          Breakeven

1,000,000           Loss

800,000             Loss

400,000             Loss

200,000            Loss

4. The income on sale of 16,000 units is computed below :

Particulars                        Amount is $

Sales                                 1,600,000

Less : variable cost           960,000

Contribution                      640,000

Less : Fixed cost               480,000

Profit                                  160,000

8 0
3 years ago
Why do some people consider mutual funds a more convenient investment than stocks or bonds?
MAXImum [283]
I think because in a mutual they both gain and invest but on their own its too much
4 0
3 years ago
Read 2 more answers
Other questions:
  • During the first two years, supplies, inc. drove the company truck 15,000 and 22,000 miles, respectively, to deliver merchandise
    6·1 answer
  • A local theater company sells 1,500 season ticket packages at a price of $250 per package. The first show in the 10-show season
    11·1 answer
  • MakeYourClick is an online ad agency, which is known for its ability to create ads that lure customers to purchase. Brenda, an e
    7·1 answer
  • A long-term partnership correlates with health and happiness throughout adulthood and late adulthood. For most people, then, ___
    15·1 answer
  • e−Bay Inc. provides the following information for the year​ 2015: Net income ​$250,000 Market price per share of common stock ​$
    6·1 answer
  • The owner of an Italian restaurant has just been notified by her landlord that the monthly lease on the building in which the re
    7·1 answer
  • In 2019, Alliant Corporation acquired Centerpoint Inc. for $548 million, of which $98 million was allocated to goodwill. At the
    12·1 answer
  • In a research proposal, which section comes first?
    9·2 answers
  • A company must account for a contract modification as a new contract if Group of answer choices the modification adds distinct g
    6·1 answer
  • Fairlawn Partners Consulting is a management-consulting firm that provides its expertise to businesses that employ its services.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!