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ra1l [238]
3 years ago
11

. A building owner charges net rent of $20 in the first year, $21 in the second year, and $22 in the third year, but is providin

g six months of free rent in the first year as a concession. Using a 10 percent discount rate, what is the effective rent over the three years
Business
1 answer:
Anit [1.1K]3 years ago
8 0

Answer: $17.28

Explanation:

6 month free concession in first year drops rent to:

= 20 / 2

= $10

Effective rent = [Present value of Year 1 rent + Present value of Year 2 rent + Present value of Year 3 rent ] / [ 1 - (1 / (1 + rate)^ number of years) / rate]

= [(10 / (1 + 10%) ) + (21 / (1 + 10%)²) + (22 / (1 + 10%)³)] * [1 - (1 / (1 + 10%)³/ 10%)]

= (9.09 + 17.355 + 16.5289) / 2.48685

= $17.28

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Why is the study of finance important?​
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Answer:

Studying finance can prepare you not only for careers in the financial services sector, but also for tasks in your everyday life. ... And because finance revolves around planning and analysis, studying finance and becoming more financially literate enables people to make better personal financial decisions.

7 0
3 years ago
Richard, an engineer, supervises the construction of a new mountainside roadway. When the road collapses in a landslide due to f
vredina [299]

Answer: Other Engineers

Explanation:

Richard can be sued by motorist in the event of the collapse of the road which he supervised construction, and the case would be considered with the already established engineering standards. The engineer standard directs that during construction or fabrication in engineering, the engineer should give little or no allowance for failure, because failure can lead to serious injuries or loss of life.

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4 years ago
The concept that consists of the distinct phases that a family progresses through from formation to retirement, each phase bring
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Answer:

The correct answer is: family life cycle.

Explanation:

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5 0
3 years ago
Alex and Jane are the best economists that FlexMoney Inc., a consulting firm, has. However, FlexMoney is in urgent need to hire
REY [17]

Answer:

Job elements method

Explanation:

Job elements methodbis defined as a work oriented job analysis method. It is more focused on human attributes that are needed to ensure superior performance on the job.

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Alex and Jane work as economists, and asked to provide criteria that are instrumental to success in their field. This is done to help with hiring of more economists. This emphasis on human attributes that will give success in the job role is called Job elements method.

5 0
3 years ago
Read 2 more answers
Duncan foods orders 500 cans of crushed tomatoes every month to be consistent with recommendations made by the EOQ model. If the
Pie

Answer:

$125

Explanation:

average inventory = 500 / 2 = 250

annual holding costs = 250 x $0.50 = $125

also, if you want to determine the order cost:

EOQ = √[(2 x S x D) / H]

EOQ = 500

H = annual inventory holding cost per unit = $0.50

D = annual demand = 500 x 12 = 6,000

500 = √[(2 x S x 6,000) / 0.50]

500² = 12,000S / 0.50

250,000 x 0.5 = 12,000S

125,000 = 12,000S

S = 125,000 / 12,000 = $10.417 ≈ $10.42

annual ordering costs = $10.42 x 12 = $125.04

7 0
3 years ago
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