Problem 5-Selling an asset You bought an apartment. Its market value as of today is 150 000 zt. Each year you can get 15 000 zt for renting out this apartment. In addition, each year, the market value of this apartment increases by 10 000 zł. An alternative to this investment is to buy obligations, which will give 12.5% each year. After how many years will you sell the apartment?

Problem 5-Selling an asset You bought an apartment. Its market value as of today is 150 000 zt. Each year you can get 15 000 zt for renting out this apartment. In addition, each year, the market value of this apartment increases by 10 000 zł. An alternative to this investment is to buy obligations, which will give 12.5% each year. After how many years will you sell the apartment?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A businessman is considering the purchase of a machine that is expected to be obsolete in 5years. The machine is worthP100,000. The prevailing rate of interest is 15%. His estimate of the annual gross incomes fromthe use of the machine isas follows:Year Income1 20,0002 25,0003 35,0004 30,0005 28,000Total = P138 999Should the businessman purchase the machine?
PMF, Inc., is equally likely to have EBIT this coming year of $10 million, $15 million, or $20 million. It's corporate tax rate is 40%, and investors pay a 10% tax rate on income from equity and a 40% tax rate on interest income. What is the interest tax shield if PMF has interest expenses of $5 million this coming year? A. $2 million B. $4 million C. $0.3 million D. $2.25 million
Most businesses replace their computers every two to three years. Assume that a computer costs $2,000 and that it fully depreciates in 3 years, at which point it has no resale value and is thrown away. Suppose the computer did not fully depreciate but still had a $250 value at the time it was replaced. What is the minimum annual cash flow that a computer must generate to be worth the purchase? The minimum annual cash flow must be at least $
Calculate the assessed value (in $) and the property tax due (in $) on the property. Fair MarketValue AssessmentRate AssessedValue PropertyTax Rate PropertyTax Due $135,000 100 $ $1.20 per $100 $
i will 10 upvotes do not use chatgpt urgent Which of the following statement correctly describes 'depreciation' ? (a) It is a monthly allowance for wear and tear of a capital good. (b) It is based on the demand and supply of consumer goods in market. (c) It is calculated as the cost of good divided by number of years of its useful life. (d) It accounts for sudden destruction of capital caused due to natural calamities.
On December 31, 2021, Annie bought a fitness center with exercise equipment and a building worth $400,000. During 2022, she bought some new euipment for $200,000 at the end of 2022, her equipment and building were valued at $590,000. What was Annie's grossinvestment during 2022?
1) Margaret has invested in a project that will cost $17000 upfront and will provide annual revenue of $5700 each year for 10 years. If the interest rate is 15% calculate the present worth of this project. Round your answer to two decimal places. 2) An asset cost $26000 with a salvage value of 2500 after 10 years. Assuming straight line depreciation, calculate the book value in year 4. Round your answer to the nearest dollar. please do both questions
Are these two claims equivalent, in conflict, or not comparable because they’re talking about different things? a. “The school levy is only a 0.1% increase of the property tax rate.” b. “This new levy is a 12% tax hike, raising our total rate to $9.33 per $1000 of value.
Bill's income is $1,000 and his net taxes are $350. His disposable income is Group of answer choices $650. $750. $1,350. -$350.
(E4) Hello! Please help me answer this one. Please refer to the given picture/s below for the questions. Please read the instructions and directions very carefully. Double and triple check your answers, previous tutors got it wrong. NOTE: Type only your answers. Please do not handwritten your answers. Make sure your formulas, solutions and answers' format are all correct. PROBLEM: Depreciation Methods 4. An industrial plant bought a generator set from P90,000.00, other expenses including installation amounted to P10,000.00. The generator set is to have a life of 17 years with a salvage value at the end of life of P5,000.00. Determine the depreciation charge during the 13th year and the book value at the of 13 years. Use: (a)SLM (b)SFM@12% (c) SYDM (d)DBM and (e)DDBM
i will 10 upvotes urgent. Which of the following statement correctly describes 'depreciation' ? (a) It is a monthly allowance for wear and tear of a capital good. (b) It is based on the demand and supply of consumer goods in market. (c) It is calculated as the cost of good divided by number of years of its useful life. (d) It accounts for sudden destruction of capital caused due to natural calamities.
A project involved initial construction costs of $2.5 million. The annual rate of economic depreciation for that construction class is 0.008. The project is expected to terminate in 25 years. The expected annual rate of inflation is 0.025. a. Estimate the horizon value at time t=25 owing to the remaining value of this asset. b. If the real discount rate is 0.035, what is the present value of the horizon value from (a)?