Vincent owns an apartment building containing 15 rental units. Vincent pays $22,690 in taxes and building upkeep every year, and
1 answer:
The total amount Vincent will make each year from the apartments will be $127,250.
Computation:
Given,
- Number of rental units =15
- The total amount paid in the form of taxes and for upkeeping of the building is $22,690.
- Charges for the rent of each apartment for each month are $833.
First, total rental income from all the 15 apartments for the entire year is computed as follows:
Now, the net income is computed based upon the total income and total expense:
Therefore, option a. $127,250 is correct for the net income of Vincent from the rental property after paying off the taxes and charges for upkeeping the building every year.
To know more about net income, refer to the link:
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Answer:
More; increasing supply and earning profit; entering the market; reducing the profit to zero; horizontal.
Explanation:
The claim by WebMD that the protein in tuna would lead to 2 Years increase in life expectancy would cause the demand to increase at every price. The demand curve will consequently shift to right.
As a result the firms in short run will supply more and enjoy profits.
Since the firms were facing long run equilibrium and were enjoying zero profit, an increase in price will cause profit to firms.
Since in the short run firms can not enter or exit they will continue producing.
In the long run attracted by the profit earned by existing firms, the new firms will enter the market till all the firms are having zero profits.
In the tuna industry the new firms will start production, so the industry supply will increase causing a rightward shift in the supply curve.
In the long run the shape of the supply curve of the industry will be horizontal.
Answer:
NPV = $ 3,969,921.84
IRR = 23.94%
Explanation:
As the values are not given so i searched and found a similar question. i am using those values.
using formulas:
Cash Flows = Net Income + Depreciation + Investment + NWC + After-tax Salvage value
NPV = NPV(rate, CF1...CF5) - CF0
IRR = IRR(values)
It requires a table for it to be solved easily and efficiently so i am putting a screen shot of a word file on which i have solved the question. the question and its values are also given in screenshots.
