21. A retirement community restricts buyers to people 55 years and older. How will this restriction affect the value of the property? The value of the property will be higher due to the value characteristic of demand. The value of the property will be less due to the value characteristic of transferability. This restriction will not have any affect on the value of the property. The value of the property will be less due to the value characteristic of scarcity.

21. A retirement community restricts buyers to people 55 years and older. How will this restriction affect the value of the property? The value of the property will be higher due to the value characteristic of demand. The value of the property will be less due to the value characteristic of transferability. This restriction will not have any affect on the value of the property. The value of the property will be less due to the value characteristic of scarcity.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

An oil company must decide whether or not to drill an oil well in a particular area that they already own. The decision maker (DM) believes that the area could be dry, reasonably good or a bonanza. See data in the table which shows the gross revenues for the oil well that is found. Decision Drill $0 Abandon $0 Probability 0.3 Dry (D) Seismic Results No structure(N) Open(0) Closed (C) Drilling costs 40M. The company can take a series of seismic soundings (at a cost of 12M) to determine the underlying geological structure. The results will be either "no structure", "open structure or "closed structure". The reliability of the testing company is as follows that is, this reflects their historical performance. Reasonably good(G) $85 $0 0.3 Note that if the test result is "no structure" the company can sell the land to a developer for 50 m. otherwise (for the other results) it can abandon the drilling idea at no benefit to itself. Dry(d) 0.7 0.2 Bonanza(B) 0.1 $200 m SO 0.4 Conditional…
(d) The company only has 4 workstations available. If it only operates its 4stations, how many weeks does it need to meet the production requirements?(e) The company has other contracts it needs to satisfy. Working on themugs more than 4 weeks means it will have to cancel another contract,incurring a penalty of $4,500. Each new workstation costs the company$2,500. What should the company do: cancel the contract or buy therequired workstations?
Lorna owns a home that is worth $385,000. She has a mortgage with a balance of $112,000. Calculate her equity in the home. $497,000 $76,000 $273,000 $245,000
A cattle producer purchased an insurance contract form the USDA Risk Management Agency. The contract pays a fixed dollar amount if and only if the rainfall in the 10 by 10 miles grid surrounding the producer’s land falls below 90 percent of the historical average rainfall. According to the lecture, this is a type of _____ insurance A cattle producer purchased an insurance contract form the USDA Risk Management Agency. The contract pays a fixed dollar amount if and only if the rainfall in the 10 by 10 miles grid surrounding the producer’s land falls below 90 percent of the historical average rainfall. According to the lecture, this is a type of _____ insurance weather pure parametric aggregate loss index parametric index
Meman
If a woman is out of the work force for 10 years while raising small children, she is legally entitled to an entry level job with her old employer. nothing with regard to her previous job. C her old job back at the wage she was making at the time. her old job back at what wage the current occupant of that job is making.
North Platt Machinery Company manufactures a shaft that must fit inside a sleeve. The firm has just received an order of 53,000 units from Southernstar Exploration Company for $48 per unit. North Platt can manufacture the shaft at $18 per unit. Southernstar desires the diameter of the shaft to be 1.278 cm. The diameter of the shaft must not be less than 1.253 cm in order to fit properly inside the sleeve. To be able to insert the shaft into a sleeve without the use of force, the diameter cannot be larger than 1.303 cm. A defective shaft is discarded and a replacement has to be shipped via express freight to locations around the world. North Platt estimates that the average cost of handling and shipping a replacement shaft will be approximately $38. Shown below are the diameters from a sample of 100 shafts manufactured during a trial run: Diameter 1.235 1.243 1.253 1.261 1.265 1.273 1.275 Number of Units 2 3 4 3 3 4 7 Diameter 1.276 1.277 1.278 1.279 1.280 1.283 1.291 Number of Units 7…
A small strip-mining coal company is trying to decide whether it should purchase or lease a new clamshell. If purchased, the “shell” will cost $152,500 and is expected to have a $50,000 salvage value after 6 years. Alternatively, the company can lease a clamshell for only $16,000 per year, but the lease payment will have to be made at the beginning of each year. If the clamshell is purchased, it will be leased to other strip-mining companies whenever possible, an activity that is expected to yield revenues of $9,000 per year. If the company’s MARR is 13% per year, should the clamshell be purchased or leased on the basis of a future worth analysis? Assume the annual M&O cost is the same for both options. The future worth when purchased is $ The future worth when leased is $
Problem #4 - Jasper Inc. would like you to provide consulting services and provide recommendation on building a new assembly facility for air conditioning units in Florida. Jasper's initial assessment indicates the following conditions for this decision-making problem: With a favorable market in Florida, Jasper thinks that a large facility would result in a net profit of $200,000 to his firm. If the market is unfavorable in Florida, the construction of a large facility would result in $190,000 net loss. - A small facility would result in a net profit of $100,000 in a favorable market, but a net loss of $20,000 would occur if the market was unfavorable. Doing nothing would result in $0 profit in either market conditions. a) Create a decision table for this problem. b) What is your recommendation if y would apply the Maximax criterion (Optimistic)? C What is your recommendation if you would apply the Criterion of Realism (Hurwicz Criterion) with a erricient of realism a = 0.9? d) What is…