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Oksanka [162]
3 years ago
10

A developer has 20 acres of real estate for a project. She has two projects to consider for the land. She can only select one pr

oject as both require all 20 acres. The developer is looking at a 10-year time frame for this investment. The expected cash flows from the projects are described below: PROJECT A: Apartments with retail space. The project will require $1,122,284.00 invested today, and an additional $800,000.00 in one year. The project will generate a cash flow of $250,000.00 in the second year. Cash flows will grow at 4.00% per year for the remainder of the 10-year project. The developer believes she can sell the property in year 10 for a cash flow of $3,000,000.00. PROJECT B: Upscale neighborhood The project will require $854,468.00 invested today, and will generate $200,000.00 in the first year. The cash flows from the project will DECLINE by 5.00% per year for the remainder of the 10-year project. The developer will not have any rights to the property at the end of the 10th year as the neighborhood will be fully developed. The developer wants a 15.00% return on his investments. Which project should the investor take
Business
1 answer:
dimaraw [331]3 years ago
4 0

Answer:

A: Apartments with the retail space

im pretty sure

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Answer:

a. The power and influence of industry driving forces

Explanation:

As per Michael Porter, there exist five competitive forces that influence competition in an industry. The five forces as per Porter are:

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Potential entrants refers to the risk of new entrants in the market.

Industry competitors refers to the extent of rivalry and competition between existing firms.

Customers relate to the negotiating or bargaining power of the customers and to what extent they exercise such power.

Substitutes refer to the emergence of substitute products in the market which may drive down a firm's sales.

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Please the remaining part of the question below :

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2.An examination of an organization’s accounting system and records that adds credibility to financial statements.

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Answer:

1.Amount a business earns after paying all expenses and costs associated with its sales and revenues. - Net income (G)

2.An examination of an organization’s accounting system and records that adds credibility to financial statements. - Audit (A)

3.Principles that determine whether an action is right or wrong. - Ethics (C)

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Explanation:

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