1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
yawa3891 [41]
2 years ago
9

An income property has a gross annual income of $14,250 and monthly expenses of $300. It has been valued at $147,000. What is th

e capitalization rate?
Business
1 answer:
sergiy2304 [10]2 years ago
8 0

Answer: 0.072

Explanation:

From the question, we are given the information that income property has a gross annual income of $14,250 and monthly expenses of $300 and that it has been valued at $147,000.

The capitalization rate will be calculated as:

= [$14, 250 - ($300 X 12)]/$147,000

= ($14,250 - $3,600)/$147,000

= $10650/$147,000

= 0.072

= 7.2%

You might be interested in
Which form of transportation is the dominant form of domestic transportation?
otez555 [7]
Car or vehicle should be the answer or try automotive transport
6 0
3 years ago
What is it called when the government uses some tool other than money to allocate goods?
erastovalidia [21]
A
Its rationing easily
7 0
3 years ago
Read 2 more answers
Sobota Corporation has provided the following partial listing of costs incurred during August:
QveST [7]

Answer:

a. $365,000

b. $346,800

Explanation:

The computations are shown below:

a. For product cost:

= Direct materials used + Direct labor + manufacturing overhead

where,

Manufacturing overhead  = Indirect labor + Property taxes, factory + Depreciation of production equipment

= $45,000 + $18,900 + $42,200

= $106,100

So, the product cost would be

= $168,100 + $90,800 + $106,100

= $365,000

b. For period cost

= Marketing salaries + Administrative travel + Sales commissions + Advertising

= $51,700 + $100,800 + $50,000 + $144,300

= $346,800

4 0
3 years ago
For the current year, Klay Corporation reports the following information:
DerKrebs [107]

Answer:

The company’s cash flows from operating activities was a cash inflow of $5,000

Explanation:

Cash at the end of the year = Cash at the beginning of the year + Net cash inflows from investing activities + Net cash inflows from financing activities + Net cash inflows from operating activities

Therefore,

Net cash inflows from operating activities = Cash at the beginning of the year + Net cash inflows from investing activities + Net cash inflows from financing activities - Cash at the end of the year = $340,000 + $40,000 + $45,000 - $420,000 = $5,000 >0

The company’s cash flows from operating activities was a cash inflow of $5,000

7 0
2 years ago
Read 2 more answers
Hybrid cars are touted as a "green" alternative; however,the financial aspects of hybrid ownership are not as clear. Consider th
lord [1]

Answer:

a)

the hybrid model initially costs $5,200 more than the regular model, plus you have another $330 in extra ownership costs per year. If you plan to own the hybrid car for 6 years, then you must recoup $5,200 / 6 = $866.67 + $330 = $1,196.67 per year.

the cost of driving 1 mile with the hybrid car = $3.60 / 27 = $0.1333

the cost of driving 1 mile with the regular model = $3.60 / 19 = $0.1895

you will save = $0.0562 per mile driven

you would need to drive $1,196.67 / $0.0562 = 21,293 miles per year to make the decision worth it

b)

if you only drive 15,500 miles per year, then you would need to save $0.0772 per mile

that would only result if gasoline's price was:

x/19 - x/27 = 0.0772

0.0526x - 0.037x = 0.0772

0.0156x = 0.0772

x = 0.0772 / 0.0156 = $4.95 per gallon

c)

you must first determine the present value of all additional expenses related to purchasing a hybrid:

year         cash flow

0                -5,200

1                 -330

2                -330

3                -330

4                -330

5                -330

6                -330

Using a financial calculator, the PV = -$6,637.24

now we must use an annuity formula to determine the annual savings required using a 10% discount rate and 6 periods:

annual savings = $6,637.24 / 4.3553 (PV annuity factor, 10%,  6 periods) = $1,523.95

so you must save $1,523.95 per year and that is equivalent to $1,523.95 / $0.0562 = 27,116.47 = 27,116 miles

d)

you also need to save $1,523.95, but you only drive 15,500 miles, so the savings per mile = $0.0983

x/19 - x/27 = 0.0983

0.0526x - 0.037x = 0.0983

0.0156x = 0.0983

x = 0.0983 / 0.0156 = $6.30 per gallon

5 0
2 years ago
Other questions:
  • The monopolist, like the perfect competitor, will maximize profits at the output where marginal revenue equals marginal cost.
    6·1 answer
  • In order to assure better management acceptance, the flow of input data for budgeting should begin with the
    9·1 answer
  • Ralph and Sven enter into a contract under which Sven agrees to guide Ralph's expedition through Tibet for which Ralph agrees to
    6·1 answer
  • Industries that are viewed as specialty (instead of a commodity) have a high level of rivalry?
    8·1 answer
  • Suppose the required reserve ratio is 8% and the fed purchases $100 million worth of treasury bills from wells fargo. by how muc
    9·1 answer
  • Jepmem Inc is expanding its global operations into North Pidlin, even though the country has a high global terrorism index. As J
    12·1 answer
  • Assume that Crane Company uses a periodic inventory system and has these account balances: Purchases $630,000; Purchase Returns
    11·2 answers
  • During its first year of operations, Anthony Lupa set up Lupo Inc. and invested $15,000 in the corporation. The company earned $
    15·1 answer
  • ________ occurs when production is in accordance with consumer preferences.
    13·1 answer
  • Jensen works for Hudson Department Stores which has locations all over the world. It is her job to determine the staffing needs
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!