Question 5 Part A: You are considering a large commercial property purchase. You will need an initial deposit of $100,000. The annual revenues for the property are expected to be $15,000 starting in year 1. Annual operating and maintenance costs are expected to be $8,000 every year starting in year 1. The property is expected to last for 30 years. What is the ROR? Question 5 Part A: Choose the correct Cash Flow Diagram for this scenario from the following choices. Option A $100,000 Option C -$100,000 1 2 $15,000 $8,000 $15,000 2 -$8000 Option B $15,000 0 А 31 1 2 30 $8,000 $100,000 Option D $15,000 0 А 31 1 2 30 -$8000 -$100,000
Question 5 Part A: You are considering a large commercial property purchase. You will need an initial deposit of $100,000. The annual revenues for the property are expected to be $15,000 starting in year 1. Annual operating and maintenance costs are expected to be $8,000 every year starting in year 1. The property is expected to last for 30 years. What is the ROR? Question 5 Part A: Choose the correct Cash Flow Diagram for this scenario from the following choices. Option A $100,000 Option C -$100,000 1 2 $15,000 $8,000 $15,000 2 -$8000 Option B $15,000 0 А 31 1 2 30 $8,000 $100,000 Option D $15,000 0 А 31 1 2 30 -$8000 -$100,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Question 5 Part A: You are considering a large commercial property purchase. You will need an initial deposit of $100,000. The annual revenues for the property are expected to be
$15,000 starting in year 1. Annual operating and maintenance costs are expected to be $8,000 every year starting in year 1. The property is expected to last for 30 years. What is the
ROR?
Question 5 Part A: Choose the correct Cash Flow Diagram for this scenario from the following choices.
Option A
$100,000
Option C
-$100,000
1
2
$15,000
$8,000
$15,000
2
-$8000
Option B
$15,000
0
А
31
1
2
30
$8,000
$100,000
Option D
$15,000
0
А
31
1
2
30
-$8000
-$100,000
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