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Mumz [18]
2 years ago
13

Burt owns a development company that specializes in constructing new, highly energy efficient houses. The best approach for an a

ppraiser to use in the appraisal of Burt's newly built homes is the ______.
Business
1 answer:
a_sh-v [17]2 years ago
7 0

Answer:

The correct answer is: Cost approach.

Explanation:

The cost approach is used in real estate to give value to new houses based on the value of the land and the price of the construction. It is said to provide a more accurate return on recently built houses. The approach can be also used for old properties but depreciation must be included in the calculation of the house value.

You might be interested in
Intensive distribution is the Multiple Choice distribution of products or services in markets where there are currently no other
soldi70 [24.7K]

When a company places its products or services in many retail outlets, then that density of distribution is referred to as Intensive distribution.

The fourth option is the correct answer.

<h3 /><h3>What is a distribution?</h3>

Distribution is a channel through which a product or service is provided by the manufacturing firm to the marketplace so that the consumers can buy it.

Intensive distribution is one of the distribution densities where the production firm tries to cater to many outlets for placing its manufactured products or services.

When the distribution is done by a firm to a single outlet relating to their products or services then it is called extensive distribution whereas the distribution is considered selective when the firm places its goods or services in fewer outlets.

Therefore, the placing of products or services by a firm in many outlets is said to be an intensive distribution.

Learn more about the density of distribution in the related link:

brainly.com/question/24250512

#SPJ1

3 0
11 months ago
Faber Products has $35 million of sales and $9.75 million of net income. Its total assets are $150 million. Assume the company’s
Setler [38]

Answer:

If the firm uses less leverage, its ROE will decrease since the cost of equity is much higher than the cost of debt. If all debt is eliminated, then ROE will decrease to 7.764% from 10.83%.

Explanation:

net income = $9.75 million

capital structure:

  • $90 million equity
  • $60 million debt

interest rate = 4% and tax rate = 21%

current return on equity (ROE) = $9.75 / $90 = 10.83%

current return of assets (ROA) = $9.75 / $150 = 6.5%

cost of debt = 4% x (1 - 21%) = 3.16%

if the company issues more equity to lower debt to 0, then:

net income = $9.75 + [$60 million x 4% x (1 - 21%)] = $9.75 + $1.896 = $11.646 million

return on equity (ROE) = $11.646 / $150 = 7.764%

return of assets (ROA) = $11.646 / $150 = 7.764%

3 0
2 years ago
Gelb Company currently manufactures 43,000 units per year of a key component for its manufacturing process. Variable costs are $
Mashutka [201]

Answer:

It is cheaper to buy the component. At this level of production by $40,750.

Explanation:

Giving the following information:

Production= 43,000 units

Variable costs are $2.95 per unit

Avoidable Fixed costs= $73,000 per year

Unavoidable fixed costs= $77,500 per year.

The company is considering buying this component from a supplier for $3.70 per unit.

We need to calculate the cost of producing and buying and choose the best option.

Production:

Total cost= 43,000*2.95 + 73,000= $199,850

Buy:

Total cost= 43,000*3.7= $159,100

It is cheaper to buy the component. At this level of production by $40,750.

8 0
2 years ago
A _______________ ___________ is part of the organization’s hierarchy, controlled by a manager/supervisor, with authoritarian or
Andru [333]

Answer:

Work Group

Explanation:

Work groups are groups of people with differents skills that work in sinergy to achieve a goal. They are controlled by a supervisor , PM or manager. This are the decision making focals but they let the team do what they do best.

3 0
1 year ago
Bread Co. commenced operations during the year as a large importer and exporter of baked goods. The imports were all from one co
storchak [24]

Answer: c. $300,000

Explanation:

Here, the shipping costs from overseas is part in inventory costs whereas the shipping costs to export are part of expense not inventory.

Given: Purchases during the year  $15.0 million

Shipping costs from overseas$1.5 million

Shipping costs to export customers$1.0 million

Inventory at year end $3.0 million

Amount of shipping costs should be included in ABC Trading's year-end inventory valuation = (Inventory at year end)÷(Purchases during the year ) × (Shipping costs from overseas)

= ($3,000,000) ÷ ($15,000,000) × ($1,500,000)

= $300,000

Hence, the correct option is c. $300,000.

3 0
1 year ago
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