GA Real Estate (178)
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Miami Dade College, Miami *
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MISC
Subject
Finance
Date
Nov 24, 2024
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GA Real Estate Practice Questions and Answers Latest
Update 2023/24 (Verified Answers)
What is a disadvantage of real estate investment? -
correct answers
✅
It is
not highly liquid.
What is the most common lease term for space in an office building? -
correct answers
✅
3-5 years
What are the primary advantages of PEX piping? -
correct answers
✅
PEX
piping is able to withstand both high and low temperatures and it is highly
resistant to chemicals.
A(n) ________ is one that conflicts with the ordinances that were enacted
after the use commenced. -
correct answers
✅
legal nonconforming use
If a cooperating broker accepts the offer of subagency from a listing broker,
to whom does the cooperating broker owe fiduciary duties? -
correct
answers
✅
Seller
Justin defaulted on his home mortgage payments. The lender obtained a
court order to foreclose on the property. At the foreclosure sale, Justin's
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Need answer with explanation & all working steps. Strict warning don't use AI
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Task 2B:
Critically evaluate the hey benefits and limitations of each of the differing investment appraisal techniques, supporting this response with relevant academic research as to whether each of the differing techniques is applied in practice within a real-life business context.
Unilever PLC planning to meet the environmental protection strategy including an introduction of the UN approved 120-litre plastic open-top drums, known as the ‘Blue-drum’. It was highlighted in 2022 AGM that Comfort’ one of their products delivered high growth in Latin America, South Asia, and Turkey, but declined in Europe where consumers reduced their spending in the category. Hence, the company is trying to reduce cost in producing plastic containers used for this washing detergent product, ‘Comfort’.
Assume that cost of manufacturing a ten-pack of Blue-drum includes direct material at C19, direct labour is 111 and variable overheads at f3. The depreciation of a special equipment is C7 with no…
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I need fast please I will upvote no plagiarism please plz
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i need the answer quickly
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CengageNOWv2| Online teachin X
N2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=D&inpro...
Differential Analysis Involving Opportunity Costs
On July 1, Coastal Distribution Company is considering leasing a building and buying the necessary equipment to operate a public w
Alternatively, the company could use the funds to invest in $149,100 of 6% U.S. Treasury bonds that mature in 16 years. The bond
at face value. The following data have been assembled:
Cost of store equipment
$149,100
Life of store equipment
16 years
Estimated residual value of store equipment
$18,600
Yearly costs to operate the warehouse, excluding
depreciation of equipment
$55,900
Yearly expected revenues-years 1-8
75,600
Yearly expected revenues-years 9-16
70,100
Required:
1. Prepare a differential analysis as of July 1 presenting the proposed operation of the warehouse for the 16 years (Alternative 1) a
investing in U.S. Treasury bonds (Alternative 2). If an amount is…
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NPV; PI; payback; IRR
Pete's Paving provides custom paving of sidewalks and driveways. One of the most labor-intensive aspects of the paving operation is preparing and mixing materials. Sharon Guillon, corporate
engineer, has found new computerized equipment to mix (and monitor the mixing of) materials. According to information received by Guillon, the equipment's cost is $580,000 and has an expected
life of eight years. If purchased, the new equipment would replace manually operated equipment. Data relating to the existing and replacement mixing equipment follow.
Original cost
Present book value
Existing Equipment
$56,000
$32,000
Annual cash operating costs
$180,000
Fair value
$12,000
Fair value in eight years
Remaining useful life
$0
8 years
Replacement Equipment
$580,000
$36,000
Cost
Annual cash operating costs
Fair value in eight years
Useful life
$0
8 years
a. Assume that the company's cost of capital is 10 percent, which is to be used in discounted cash flow analysis.
(1) Compute…
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
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8. Analysis of a replacement project
Aa
Aa
At times firms will need to decide if they want to continue to use their current equipment or replace the equipment with newer equipment.
The company will need to do replacement analysis to determine which option is the best financial decision for the company.
Johnson Co. is considering replacing an existing piece of equipment. The project involves the following:
The new equipment will have a cost of $1,800,000, and it will be depreciated on a straight-line basis over a period of six years (years 1-6).
• The old machine is also being depreciated on a straight-line basis. It has a book value of $200,000 (at year 0) and four more years of depreciation left
($50,000 per year).
The new equipment will have a salvage value of $0 at the end of the project's life (year 6). The old machine has a current salvage value (at year 0) of
$300,000.
Replacing the old machine will require an investment in net working capital (NWC) of $60,000 that will be…
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tudent question
Time to preview question:
00:09:18
Seeking for accounting rate of return for Option 1, 2, & 3 (info below).
The senior VP in charge has asked that you make a recommendation for the purchase of new equipment.Ideally, the company wants to limit its capital investment to $500,000. However, if an asset meritsspending more, an investment exceeding this limit may be considered. You assemble a team to helpyou. Your goal is to determine which option will result in the best investment for the company. Toencourage capital investments, the government has exempted taxes on profits from new investments.This legislation is to be in effect for the foreseeable future.The average reported operating income for the company is $1,740,000.The company uses a 10% discount rate in evaluating capital investments.The team is considering the following optionsOption 1:The asset cost is $300,000.The asset is expected to have an 8-year useful life with no salvage value.Straight-line…
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Solve it using formulas, no tables
correct answer: NPV(9%) = 37.75103 - 28.53393 = 4.217107
A commercial property is available for a price of £25.5 million and a developer is interested
in purchasing it in order to turn it into a rental property. The developer estimates that the total
refurbishments costs will amount to £3.1 million, which will be incurred exactly three months
after purchase.
A potential tenant company has agreed to occupy and rent out the property six months after
the date of purchase. The lease agreement states that the company will rent the office block
for 15 years and will then purchase the property at the end of the rental period for £28
million. It is further agreed that rents will be paid quarterly in arrears and will be increased
every 3 years at the rate of 3.5% per annum compound. The initial rent has been set at £2.7
million per annum with the first rental payment is due exactly three months following the date
of occupation.
Calculate the net present value…
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Need The IRR for A & B & Question C
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Please do not give solution in image format thanku
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Please do not give solution in image format thanku
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I need answer of this question solution general accounting
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vnt.1
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A My Home
* CengageNoWv2 | Online teachin X
enow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator-&inpro..
***
Average Rate of Return, Cash Payback Period, Net Present Value Method for a Service Company
Spanish Peaks Railroad Inc, is considering acquiring equipment at a cost of $215,000, The equipment has an estimated life of 10 years and no
residual value. It is expected to provide yearly net cash flows of $43,000. The company's minimum desired rate of return for net present value
analysis is 10%.
Present Value of an Annuity of $1 at Compound Interest
Year
6%
10%
12%
15%
20%
1.
0.943
0.909
0.893
0.870
0.833
2
1.833
1.736
1.690
1.626
1.528
3
2.673
2.487
2.402
2.283
2.106
4
3.465
3.170
3.037
2.855
2.589
4.212
3.791
3.605
3.353
2.991
4.917
4.355
4.111
3.785
3.326
7.
5.582
4.868
4ర
4.160
3.605
6.210
5.335
4.968
4.487
3.837
6.802
5.759
5.328
4.772
4.031
6.145
5.650
5.019
4.192
10
7.360
Compute the following:
a. The average rate of return, giving effect to…
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Don't used Ai solution correct answer and don't used hand raiting
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USF
x My Home
4 CengageNOWv2 |Online teachir x+
agenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inpro... to
向
An 8-year project is estimated to cost $448,000 and have no residual value. If the straight-line depreciation method is used and the average rate of
return is 12%, determine the average annual income.
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SUBJECT: ENGINEERING ECONOMICS
NOTES: 2 DECIMAL ONLY
MUST BOX THE FINAL ANSWERS
SOLUTIONS MUST BE CLEAR AND UNDERSTANDABLE
MUST HAVE GIVEN, FORMULA TO BE USED, SOLUTIONS, ANSWER
QUESTION:
A commercial rental property is offered for sale and consists of a two-storey building in a business district of small city. A prospective purchaser estimated that if he buys his property he will hold it for about 10 years. He estimates that the average annual receipts from rentals during this period will be P70,000 and the average annual expenses for all purposes in connection with ownership and operation will amount to P27,000. He believes that the property can be sold for a net of P400,000 at the end of 10 years. He considers a minimum rate of return of 7%. On the basis of the above estimates, using the Annual Worth method, what price for this property would just permit him to recover his investment at 7% return?
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Related Questions
- Need answer with explanation & all working steps. Strict warning don't use AIarrow_forwardTask 2B: Critically evaluate the hey benefits and limitations of each of the differing investment appraisal techniques, supporting this response with relevant academic research as to whether each of the differing techniques is applied in practice within a real-life business context. Unilever PLC planning to meet the environmental protection strategy including an introduction of the UN approved 120-litre plastic open-top drums, known as the ‘Blue-drum’. It was highlighted in 2022 AGM that Comfort’ one of their products delivered high growth in Latin America, South Asia, and Turkey, but declined in Europe where consumers reduced their spending in the category. Hence, the company is trying to reduce cost in producing plastic containers used for this washing detergent product, ‘Comfort’. Assume that cost of manufacturing a ten-pack of Blue-drum includes direct material at C19, direct labour is 111 and variable overheads at f3. The depreciation of a special equipment is C7 with no…arrow_forwardI need fast please I will upvote no plagiarism please plzarrow_forward
- i need the answer quicklyarrow_forwardCengageNOWv2| Online teachin X N2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=D&inpro... Differential Analysis Involving Opportunity Costs On July 1, Coastal Distribution Company is considering leasing a building and buying the necessary equipment to operate a public w Alternatively, the company could use the funds to invest in $149,100 of 6% U.S. Treasury bonds that mature in 16 years. The bond at face value. The following data have been assembled: Cost of store equipment $149,100 Life of store equipment 16 years Estimated residual value of store equipment $18,600 Yearly costs to operate the warehouse, excluding depreciation of equipment $55,900 Yearly expected revenues-years 1-8 75,600 Yearly expected revenues-years 9-16 70,100 Required: 1. Prepare a differential analysis as of July 1 presenting the proposed operation of the warehouse for the 16 years (Alternative 1) a investing in U.S. Treasury bonds (Alternative 2). If an amount is…arrow_forwardNPV; PI; payback; IRR Pete's Paving provides custom paving of sidewalks and driveways. One of the most labor-intensive aspects of the paving operation is preparing and mixing materials. Sharon Guillon, corporate engineer, has found new computerized equipment to mix (and monitor the mixing of) materials. According to information received by Guillon, the equipment's cost is $580,000 and has an expected life of eight years. If purchased, the new equipment would replace manually operated equipment. Data relating to the existing and replacement mixing equipment follow. Original cost Present book value Existing Equipment $56,000 $32,000 Annual cash operating costs $180,000 Fair value $12,000 Fair value in eight years Remaining useful life $0 8 years Replacement Equipment $580,000 $36,000 Cost Annual cash operating costs Fair value in eight years Useful life $0 8 years a. Assume that the company's cost of capital is 10 percent, which is to be used in discounted cash flow analysis. (1) Compute…arrow_forward
- help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all workingarrow_forward8. Analysis of a replacement project Aa Aa At times firms will need to decide if they want to continue to use their current equipment or replace the equipment with newer equipment. The company will need to do replacement analysis to determine which option is the best financial decision for the company. Johnson Co. is considering replacing an existing piece of equipment. The project involves the following: The new equipment will have a cost of $1,800,000, and it will be depreciated on a straight-line basis over a period of six years (years 1-6). • The old machine is also being depreciated on a straight-line basis. It has a book value of $200,000 (at year 0) and four more years of depreciation left ($50,000 per year). The new equipment will have a salvage value of $0 at the end of the project's life (year 6). The old machine has a current salvage value (at year 0) of $300,000. Replacing the old machine will require an investment in net working capital (NWC) of $60,000 that will be…arrow_forwardtudent question Time to preview question: 00:09:18 Seeking for accounting rate of return for Option 1, 2, & 3 (info below). The senior VP in charge has asked that you make a recommendation for the purchase of new equipment.Ideally, the company wants to limit its capital investment to $500,000. However, if an asset meritsspending more, an investment exceeding this limit may be considered. You assemble a team to helpyou. Your goal is to determine which option will result in the best investment for the company. Toencourage capital investments, the government has exempted taxes on profits from new investments.This legislation is to be in effect for the foreseeable future.The average reported operating income for the company is $1,740,000.The company uses a 10% discount rate in evaluating capital investments.The team is considering the following optionsOption 1:The asset cost is $300,000.The asset is expected to have an 8-year useful life with no salvage value.Straight-line…arrow_forward
- Solve it using formulas, no tables correct answer: NPV(9%) = 37.75103 - 28.53393 = 4.217107 A commercial property is available for a price of £25.5 million and a developer is interested in purchasing it in order to turn it into a rental property. The developer estimates that the total refurbishments costs will amount to £3.1 million, which will be incurred exactly three months after purchase. A potential tenant company has agreed to occupy and rent out the property six months after the date of purchase. The lease agreement states that the company will rent the office block for 15 years and will then purchase the property at the end of the rental period for £28 million. It is further agreed that rents will be paid quarterly in arrears and will be increased every 3 years at the rate of 3.5% per annum compound. The initial rent has been set at £2.7 million per annum with the first rental payment is due exactly three months following the date of occupation. Calculate the net present value…arrow_forwardNeed The IRR for A & B & Question Carrow_forwardPlease do not give solution in image format thankuarrow_forward
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Intermediate Financial Management (MindTap Course...
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ISBN:9781337395083
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Publisher:Cengage Learning