1. An investor who recently returned from overseas has decided to invest in a venture which has been proposed by a leading investment company.The investor is expected to receive ten (10) sum payments of $5000 at the end of each year for ten times (10) years. However payment increased on by 5% on the second , 10% on the fourth , 15% on the sixth , 20% on the eighth and 25% on the tenth payment . Calculate the sum that should be paid to him now at an interest of 5 % . 2. An office complex measuring 203m^3 has been offered for sale. The cost of replacing the assets and depreciation is estimated $1200m^2 and 10% respectively. I. Calculate the market value price. II. If an extension of 52m^2 has been made to the office complex to be used as residential facility , calculate the capital value of the residential facility at a rate of 900m^2 depression of 4% III.if land comparable land value is assessed at $30000,calculate the value of the subject property.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 4CE: Manzer Enterprises is considering two independent investments: A new automated materials handling...
icon
Related questions
Question
100%
1. An investor who recently returned from overseas has decided to invest in a venture which has been proposed by a leading investment company.The investor is expected to receive ten (10) sum payments of $5000 at the end of each year for ten times (10) years. However payment increased on by 5% on the second , 10% on the fourth , 15% on the sixth , 20% on the eighth and 25% on the tenth payment . Calculate the sum that should be paid to him now at an interest of 5 % . 2. An office complex measuring 203m^3 has been offered for sale. The cost of replacing the assets and depreciation is estimated $1200m^2 and 10% respectively. I. Calculate the market value price. II. If an extension of 52m^2 has been made to the office complex to be used as residential facility , calculate the capital value of the residential facility at a rate of 900m^2 depression of 4% III.if land comparable land value is assessed at $30000,calculate the value of the subject property.
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Present Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Entrepreneurial Finance
Entrepreneurial Finance
Finance
ISBN:
9781337635653
Author:
Leach
Publisher:
Cengage
EBK CFIN
EBK CFIN
Finance
ISBN:
9781337671743
Author:
BESLEY
Publisher:
CENGAGE LEARNING - CONSIGNMENT