Classical economists believed that: ________

3. A property that produces a first year NOI of $80,000 is purchased for $750,000. The NOI is expected to increase by 15% in the

FromTheMoon [43]

Answer:

Net Present Value (NPV) = $ 115,998

Explanation:

Calculation of the Net Present Value

Net Present Value = Cash Inflows - Cash Outflows

NOI from 6th year = 80,000*115% = 92,000

NPV = 80000 (PVAF, 5 year) + 92,000 (PVAF, (105), 9.5%) + 830,000/(1.095)10 - 750,000

NPV = (80,000 x 3.839) + (92,000 x 2.439) + (830,000 x 0.403) - 750,000

= 307,120 + 224,388 + 334,490 - 750,000

The Net Present Value will be $ 115998

6 0

3 years ago

For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $11 and a marginal cost of $10. A)

jeyben [28]

Answer:

The correct answer is option d.

Explanation:

The 100th unit of output that the firm produces has a marginal revenue of $11 and a marginal cost of $10.

The profit to a firm is maximized when the marginal revenue earned and marginal cost incurred are equal.

When the firm is producing the 100th unit of output the marginal revenue is $1 higher than the marginal cost. This implies that the production of the 100th unit increases the firm's profit by $1.

7 0

3 years ago

The Allowance for Bad Debts account had a balance of $6,300 at the beginning of the year and $8,100 at the end of the year. Duri

shutvik [7]

Answer: $9,600

Explanation:

Past-due accounts written off = Beginning Allowance balance + Bad Debts expense - Ending Allowance Balance

= 6,300 + 11,400 - 8,100

= $9,600

6 0

3 years ago

Firms use economic analyses to better understand the overall outlook for the economy and how economic changes will impact the fi

KIM [24]

Answer:

True.

Explanation:

It is a true statement.

The firm economic result that is, financial performance depends upon various factors that includes external forces also.

Further, to remain in industry ( or for stable growth ), the firm have to synchronize their activities with the environment.

The question specifies economic environment that relatively impact the firm. So , this statement is true.

6 0

3 years ago

Serena just finished making a buyer presentation to Mark and Debbie Calhoun. Now that they understand the difference between bei

Yanka [14]

Answer:

Notifying Serena of any material changes

Explanation:

With Serena now serving as their (Mark and debbie Calhoun) agents, it is paramount that Serena (the agent) be notified about any material changes made by the buyers. The buying agents (in this case Serena) is an individual or organization that is responsible for purchasing goods or property on behalf of another person. They are usually license professionals who search and undergo the purchasing procedure of products that their clients is interested in owning.

8 0

4 years ago

Classical economists believed that: _________