Using the high-low method, calculate the fixed cost of leasing.

Q: e. What is the cost of leasing? Do r

A: Leasing Cost: It is the present value of the lease costs annually discounted at the borrowing cost.…

Q: What will be the Return from Owning versus Leasing explain with example?

A: Return from owning an asset: The first benefit of owning an asset is that individuals can use an…

Q: The topic is about standerd cost in cost accounting cost: Is it possible to measure the delivery of…

A: please give a like, your response matters  Yes it is possible to measure the delivery of a service…

Q: What is the difference between base or face rents and effective rents?

A: Introduction: Base rent or face rent is the initial rent payable under the lease usually a specified…

Q: The lessor’s initial direct costs often are substantial. What are initial direct costs?

A: The costs which are associated directly with originating a lease and are essential to acquire the…

Q: LC8Q3.Which of the following is a variable cost? Loan interest rate Salary Rent Salesperson s…

A: A variable cost is a type of cost which changes in accordance to the change in the level of output.

Q: cribe the factors in selectir ntify the sources of short-t ermine the costs of short-t . SHORT TERM…

A: Short-term financing refers to the type of loan taken by the borrower which is for a shorter period…

Q: How is the total payment under a unit-price contract determined? When is such a contract likely to…

A: Unit price contract is a common pricing contract which is based on each unit or task of the…

Q: What are the uses of Straight-Line Rents?

A: The question is based on the concept of straight line method of rent calculation, in accounting…

Q: How can we calculate effective rent?

A: In brief, the net effective rent is determined by taking the full concession sum, dividing it by the…

Q: Apply the cost principle to the acquisition of long-livedassets.

A: Acquisition cost associated with property, plant, and equipment is the cash-equivalent purchase…

Q: What is the Relationship between the Incremental Cost and the Loan-to-Value Ratio?

A: The question is based on the concept loan to value ratio and its relationship with incremental cost.

Q: What are the features of Rent discount for industrial/warehouse properties that might be added for…

A: The question is based on the concept of rent discounting for real estate.

Q: Is leasing good for individuals? Why or Why not?

A: The answer for the theory question on leasing is discussed hereunder : A lease is a contractual…

Q: How does the Leasing reduce the upfront cash needed to use an asset?

A:

Q: What is a stand-alone principle and discuss the relevancy of financing cost under this principle.

A: In capital budgeting, the project evaluation and assessment is based on the criteria of project's…

Q: Explain the procedure used to calculate the effective rents?

A: The question is based on the concept of rent and net effective rent. Rent is consider as a periodic…

Q: Which are the effects of Tenant Improvements and Free Rents on FFO?

A: FFO stands for Funds From Operations. The amount that is derived and used by real estate investment…

Q: advantage (disadvantage) of renting out the building?

A: Annual sales P10550000 Less Expenses   Annual cost of goods sold and other operating expenses…

Q: 1. Which of the following is an example of a variable cost? а. interest b. ingredients С. insurance…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: True or false Amortization is the spreading out of a cost over a period of time  ?

A: Cost refers to the amount incurred by the entity over a particular item of expense, asset or…

Q: lease identify what types of companies would use market-based pricing versus what type of companies…

A: Market-based pricing refers to the pricing strategy that is based on the market environment.…

Q: Define sale-and-leaseback

A: sale-and-leaseback

Q: What is net advantage to leasing (NAL)?

A: Leasing refers to an agreement between two parties to use asset of one by other in exchange of some…

Q: The marginal cost of an asset is equivalent to its EUAC. True or False?

A: Marginal Cost of Asset means the cost required to run the asset for the next period. EUAC =…

Q: Explain the Effect of Below-Market Financing on Property Prices?

A: When interest rate for financing the property is less than the normal interest rate in economy, it…

Q: difference between hire purchase and leasing

A: The hire purchase and leasing are mainly different due to the term of ownership.

Q: Which one of the following is likely to be a cost driver? Select one: a. Machine hours b. None of…

A: Cost driver: It is the element that causes or associates to a change in the total cost of an…

Q: what will be the Market Leasing Assumptions with Renewal Probabilities?

A: Market leasing assumption is a very important assumption which is used in calculating the value of…

Q: Explain Amortised cost and how to calculate it.

A: Amortized cost refers to the cost that helps to allocate the cost of financial/intangible assets…

Q: Identify housing alternatives, assess the rental option, and perform a rent to buy analysis

A: RENTAL  It is the periodic payment made by the tenant to the owner for the use of land, building,…

Q: What are the key advantages and disadvantages of leasing?

A: Leasing:Leasing is a contractual agreement between the lessor and lessee for hiring of a particular…

Q: How does Leasing offer flexibility and a lower cost when disposing of the asset?

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: How can you apply the concepts of “Time Value of Money” in deciding for Rent-Buy-Lease of Equipment?

A: Time value of money in deciding for Rent All the future rents are converted to present value in…

Q: Describe some economic factors that might provide an advantageto leasing.

A: Before we discuss the economic factors favoring leasing, let's understand the meaning of leasing. As…

Q: What factors would tend to make leasing more desirable than owning?

A: Lease: Leases are agreements in which the proprietor of the asset permits another party to utilize…

Q: ich of the following pairs are correctly classified as variable costs and fixed costs, respectively?…

A: Variable costs are those cost which varies with an increase or decrease in sales. The fixed cost is…

Q: Discuss the role of leasing for private transportation and how it impacts the cost structure and…

A: Lease can be refers to contract that outlines the terms under which one party agrees to rent…

Q: Murabaha financing and leasing

A: In Murabahah financing, Islamic banks are making a contract called purchase order accompanied with…

Q: Fixed costs include all of the following except: A. Rent  B. Salaries C. Wages  D. Depreciation…

A: Fixed costs are the cost which have been incurred irrespective of production quantity. Fixed costs…

Q: margin requirement, when you buy a CFD

A: Contract for difference is an agreement between two parties to settle the difference between open…

Q: Define each of the following terms:h. Net advantage to leasing (NAL)

A: Introduction: The term leasing is a process by which lessee will be allowed to use the asset for a…

Q: Describe the concept of lease.

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.