Answer:
Explanation:
The lease rent that depends upon CPI rate and operating expenses has more risk than normal increase in value rent alternatives. Reason being that CPI can be increased or decreased in future and this will affect the builder's cashflow.
Likewise, operating expense is also an increase or decrease because the builder's cashflow can increase or decrease .
The risk level of all the four alternatives is shown below
Net lease with steps- Less risky
Net lease with CPI - Highly risky
Gross lease - Moderately risky
Gross lease with CPI - Highly risky
Answer and Explanation:
In an action based on strict liability, a plaintiff must show that
(1) a product was defective,
(2) the defendant was in the business of distributing the product,
(3) the product was unreasonably dangerous due to the defect,
(4) the plaintiff suffered harm,
(5) the defect was the proximate cause of the harm, and
(6) the goods were not substantially changed from the time they were sold.
A plaintiff does not have to show that there was a failure to exercise due care, and this distinguishes an action based on strict liability from an action based on negligence, which requires proof of a lack of due care. If Bob establishes his case, the court in this problem is most likely to rule in his favor, because the manufacturer is strictly liable in this case. Strict liability allows a plaintiff to recover damages for injuries resulting from product defects without proof of fault.
Answer:
a. .938 If the exchange rate is less than this, it costs more dollars to buy a tall latte in the U.S. than in the Euro area.
Explanation:
We can see in the example that the Euro is cheaper than the dollar in purchasing-power parity. More specifically, the exchange rate is .938 euros per dollar.
This is why it is more expensive to buy a tall latte in the U.S. than in Europe. The Euro is cheaper.
The relevant cost of building an office building is $9 million.
- The calculation of the relevant cost of building an office building is as follows:
= Sale value of partially completed building and land + additional labor & material required
= $4 million + $5 million
= $9 million
Therefore we can conclude that the relevant cost of building an office building is $9 million.
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