Acquisition Cost Desert State University installed a HD video board with an invoice price of $5,000,000 in its football stadium.
Desert State paid an additional $100,000 of delivery and installation costs relating to this board. Because this is one of the largest boards in the world, Desert State also installed ten S-tonas conditioning units at a total cost of $120,000 to keep the board cool in the desert heat. Required:
Determine the cost of the video board.
Net operating income (NOI) = Annual gross income - Vacancy loss - Expenses. 10 units x $1,000 per month x 12 months in a year = $120,000 annual gross income. Subtract vacancy loss ($6,000) and expenses ($30,000) to get $84,000. Depreciation and debt service do not figure into the calculation for NOI.
Semi structured decisions are the decisions that occur in situations in which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision.
Semi structured decisions are also referred to as the decisions which are basically in the middle of the structured decisions and the unstructured decisions, which has to do with the use of human judgment and agreement based on solution method.
<span>False. The above scenario is not true. Network externalities are nothing but Metcalfe's law which states that the telecommunication network is directly proportional to square of connected users. The law also helps in business management. Network externalities relates to competition of telecommunication companies and their merge with one another.</span>