subject
Business, 04.04.2020 02:29 Sadaalcala1

You have bought a house today at the price of $500,000. In the next two years, you will get a rent of $50,000 each year. In year 3, there is no rent income but you will sell the house at the price of $800,000. Suppose the discount rate (interest rate) is always 10% each year. What is the present value at time zero for the rent income at year 2

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 20:30
What is the difference between a public and a private corporation?
Answers: 1
question
Business, 22.06.2019 10:20
Blue spruce corp. has the following transactions during august of the current year. aug. 1 issues shares of common stock to investors in exchange for $10,170. 4 pays insurance in advance for 3 months, $1,720. 16 receives $710 from clients for services rendered. 27 pays the secretary $740 salary. indicate the basic analysis and the debit-credit analysis.
Answers: 1
question
Business, 22.06.2019 21:10
You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i.e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?
Answers: 1
question
Business, 23.06.2019 07:00
Will mark you the which of the following groups has caused ongoing conflicts in afghanistan? a. the sinhalese majority b. natalitesc. kashmir sikhsd. the taliban
Answers: 2
You know the right answer?
You have bought a house today at the price of $500,000. In the next two years, you will get a rent o...
Questions
question
Mathematics, 30.01.2021 17:30
question
Biology, 30.01.2021 17:30
question
Chemistry, 30.01.2021 17:30
Questions on the website: 13722366