What is the house price per unit? A six-unitsdetached house development project costsare the following: - Total land cost30,000,000 Baht (pay the beginning of theproject) - House construction cost2,000,000 Baht per unit (pay one unit at theend of month) - Total SG&A 6,000,000 Baht(pay equally at the end of month 1 - 6) Totalproject time is six months Detached housewill be sold 1 unit per month starting month1, which is paid full payment at the end ofeach month (means get full paid 1 unit atthe end of month 1-6). The selling price is30 percent markup. Weighted average costof capital of project is 12%.

House price per unit refers to the cost of a single housing unit or property within a larger…

Answered: What is the house price per unit? A…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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year, and overhead cost by Php 8000 per year. If the young engineer expects to earn at least 20% on his capital, should he invest ? 2. A company is considering two types of equipment for power plant. Type A will cost Php 200,000. , requires Php 32,000 per year for power, supplies and maintenance and Php 50,000. annually for labor. Type B will require an investment of Php 300,000 and require Php 24,000 annually for power, supplies and maintenance, but will cost only Php 32,000 per year for labor. Insurance and property taxes total 3% of first cost per year. Payroll taxes (salary tax)are 4% annually. Estimated life of each type of equipment is 10 years and capital is worth 15% before taxes. Which equipment should be purchased?
You are evaluating a project for your company. You estimate the sales price to be $580 per unit and sales volume to be 2,800 units in year 1; 3,800 units in year 2; and 2,300 units in year 3. The project has a three-year life. Variable costs amount to $380 per unit and fixed costs are $240,000 per year. The project requires an initial investment of $365,000 in assets which will be depreciated straight-line to zero over the three-year project life. The actual market value of these assets at the end of year 3 is expected to be $58,000. NWC requirements at the beginning of each year will be approximately 25 percent of the projected sales during the coming year. The tax rate is 21 percent and the required return on the project is 9 percent. What change in NWC occurs at the end of year 1? Multiple Choice A. $114,550 B. $145,000 C. $333,500 D. $263,465
Sparky Inc. is evaluating a project that costs $150 using the WACC method. Their WACC is 11.5% and the project has EBIT of $75 per year each year for six years. The tax rate is 30%. Calculate the NPV of the project.
A developer plans to start construction of a building in one year if at that point rent levels make construction feasible. At that time the building will cost $1,340,000 to construct. During the first year after construction would take place, there is a 60 percent chance that NOI will be $175,500 and a 40 percent chance that the NOI will be $88,600. In either case, NOI would be expected to increase at 2 percent per year after the first year. Required: How much should the developer be willing to pay for the land if he wants a 12 percent rate of return? (Round your answer to the nearest whole dollar amount.) Amount payable by developer $ 1,334,444
A business is considering purchasing a piece of new equipment for $200,000. The equipment will generate the following revenues: Year 1: $50,000Year 2: $50,000Year 3: $50,000Year 4: $60,000The machine can be sold at the end of the year four for $25,000. Assume a discount of 8%. 2. What is the compounded return(IRR) for this project?
A new municipal refuse-collection truck can be purchased for $84,000. Its expected useful life is six years, at which time its market value will be zero. Annual receipts less expenses will be approximately $18,000 per year over the six-year study period. At MARR of 19%, calculate the benefit-cost ratio of the project a. 0.53 b. 0.63 c. 0.73 d. none of the above
You are evaluating a project for your company. You estimate the sales price to be $520 per unit and sales volume to be 2,200 units in year 1; 3,200 units in year 2; and 1,700 units in year 3. The project has a three-year life. Variable costs amount to $320 per unit and fixed costs are $210,000 per year. The project requires an initial investment of $335,000 in assets which will be depreciated straight-line to zero over the three-year project life. The actual market value of these assets at the end of year 3 is expected to be $52,000. NWC requirements at the beginning of each year will be approximately 20 percent of the projected sales during the coming year. The tax rate is 21 percent and the required return on the project is 10 percent. What change in NWC occurs at the end of year 1? $104,000 $139,672 $82,160 $176,800
Your IT company is working on a four-month project for a local mining company. The total planned value of the project (BAC) is $600,000. You are at the end of month three. By the end of month three you scheduled to spend $500,000(PV). The actual cost through this three-month mark is $450,000 (AC). The total work completed at the end of month three is 94 percent. Calculate the earned value, EV=
There are three possibilities with the future NOI of a piece of land. Net Operating Income of 255,000 (47% likely); 163,000 (23% likely), and 75,000 (30% likely). The required return is 15% with a growth rate of 3.10%. Construction costs are $1,312,000 no matter the future NOI. Assume that the developer will wait 2 years and then construction will be finished in one day. NOI referenced above will be received throughout year 3 (assume end of year for simplicity). What price would you bid on the land when you factor in the real option? A. 365,214 B. 263,563 C. 236,245 D. 123,363 E. 305,319
A coal fired Power plant with 30,000 kw rated capacity costs P 15,000 per kw installed. Annual operating cost, P 12 million; annual maintenance cost, P 8 million; annual depreciation, P 15 million; interest on investment per year, 8%; cost of coal, P 800 per ton. If one pound of coal is needed to generate 1 kwh, find the total annual cost to operate the plant assuming plant capacity factor of 50%.
You are analyzing a property that popped up on CREXI. Real estate taxes and management services cost 42,362 and 31,563, respectfully. Other expenses are 15,369. If your company’s required return is 10%, what must the average annual rent be over the next five years for you to purchase the property at $400,000 and obtain that 10%? Expenses grow at 2.5% per year. A. 189,500 B. 198,400 C. 201,300 D. 192,700 E. 209,500
a new process for a manufacturing process will have a first cost of $45,000 with annual costs of $38,000. Extra income associated with the new process is expected to be $62,000 per year. What is the discounted payback period at i=12% per year? Options: 2.48 3.23 2.25 4.52

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