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Lubov Fominskaja [6]
3 years ago
14

Suppose that we observe two comparable properties that have each sold twice within the past four years. Property A sold 24 month

s ago for $500,000 and Property B sold 48 months ago for $575,000. If the two properties were sold today at $425,000 and $465,000, respectively, estimate the change in market conditions (percentage change in price) per month, assuming we equally weight the two properties in our analysis.
Business
1 answer:
Elina [12.6K]3 years ago
4 0

Answer:

0.475% per month

Explanation:

value of property A 24 months ago = $500,000

current value of property A = $425,000

total decrease in value = $500,000 - $425,000 = $75,000 or 15%

monthly % decrease:

1.15 = (1 + r)²⁴

²⁴√1.15 = (1 + r)

1.0058 = 1 + r

r = 0.00584 = 0.58% decrease per month

value of property B 48 months ago = $575,000

current value of property A = $465,000

total decrease in value = $575,000 - $465,000 = $110,000 or 19.13%

monthly % decrease:

1.1913= (1 + r)⁴⁸

⁴⁸√1.1913 = (1 + r)

1.0037 = 1 + r

r = 0.0037 = 0.37% decrease per month

if both properties are weighted equally, then the market decrease per month = (0.58% x 1/2) + (0.37% x 1/2) = 0.475% per month

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Five productive activities where division of labour is not needed​
jenyasd209 [6]

Answer:

1. Fitness

2. Reading

3. Watch educational videos

4. Think of inventions

5. Eat

Explanation:

4 0
3 years ago
You purchased an airplane for $500,000 and will depreciate it using a 7-year an MACRS. Salvage value in year 4 is expected to be
pishuonlain [190]

Answer:

Year 0 = -$500,000

Year 1 = $130,580

Year 2  = $150,980

Year 3 = $136,980

Year 4 = $433,260

NPV = $65,495

Explanation:

depreciation expense per year under 7 year MACRS table:

year 1 = $500,000 x 14.29% = $71,450

year 2 = $500,000 x 24.49% = $122,450

year 3 = $500,000 x 17.49% = $87,450

year 4 = $500,000 x 12.49% = $62,450

cash flow year 1 = [($200,000 - $30,000 - $71,450) x (1 - 40%)] + $71,450 = $130,580

cash flow year 2 = [($200,000 - $30,000 - $122,450) x (1 - 40%)] + $122,450 = $150,980

cash flow year 3 = [($200,000 - $30,000 - $87,450) x (1 - 40%)] + $87,450 = $136,980

cash flow year 4 = [($200,000 - $30,000 - $62,450 + $93,800 gain on sale) x (1 - 40%)] + $62,450 + $250,000 = $433,260

MARR = 15%

using a financial calculator, NPV = $65,495

3 0
3 years ago
Why should a pencil never be used as a tool when working inside a computer?
Sedbober [7]
Pencil lead conducts electricity
you might short circuit some stuff

also, the lead could break and get stuck in the computer
6 0
3 years ago
Last year, Nikkola Company had net sales of $2,299,500,000 and cost of goods sold of $1,755,000,000. Nikkola had the following b
viktelen [127]

Answer:

Average receivables = $157,500,000

Explanation:

<em>Account receivable represent the amount of credit made by a business which remain uncollected as at the reporting date. In other words, they represent the amount that customers are owing the business in respect of credit sales.</em>

Average account receivables

=(opening balance + closing balance)/2

=( $142,650,000 + $172,350,000)/2

= 157,500,000.

6 0
3 years ago
In the design of a chemical plant, the following costs and revenues (in the third year of production) are projected:
miss Akunina [59]

Answer:

A

Explanation:

6 0
3 years ago
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