What incentive does a company have to allocate more of a group purchase price to land than to building

Q: Discuss the form and sources of capital to be obtain by farming enterprise.

A: The capital investment in the company is the main source of funds. Capital and funds can generate…

Q: What does General requirements for loan closing of land development?

A: The last step in financing or buying any land is known as the closing of a loan. The term settlement…

Q: Explain Growing Income from Existing Properties?

A: The income from existing properties grows due to the following reasons: 1. Demand and supply of the…

Q: What is a real estate investment trust? Explain the difference between public and private REITs. How…

A: The following question are answered below : What is a real estate investment trust? Explain the…

Q: What are the reasons for using the private rate of return as thethe opportunity cost of capital for…

A: Opportunity cost of capital is the rate which an investor foregoes due to the investment in other…

Q: types of businesses are likely to own investment property and thus use IAS 40

A: IAS 40 - Investment property is used as a guidance regarding how to account profits and increments…

Q: What are the unique risks of land development projects from the developer’s and lender’s points of…

A: The risks of land development projects from developer’s point of view: Planning risk: The ability…

Q: How can the marginal rate of return be used to decide when to sell a property?

A: Answer: The following are the factors that cause a change in marginal rate of return over time, An…

Q: opportunity cost? Depreciation Given the choice, would a firm prefer to use MACRS depreciation or…

A: Depriciation:- Depreciation is an accounting method that is used to divide or allocate Cost of a…

Q: What alternatives do companies have for evaluating alternative projects or investments?

A: Capital Budgeting Techniques helps to decide the investment project that should be selected.

Q: What is sensitivity analysis? How might it be used in real estate development?

A: Answer: A real estate development is the ongoing reconfiguration of the “built environment” to suit…

Q: Are tax considerations important in renovation decisions?

A: Introduction: An income property can be well-defined as the property that has been acquired or…

Q: What is the capitalized cost of the new machinery?

A: Capitalized costs are incurred when an organization purchases any fixed asset such as building,…

Q: How can a developer create value over and above their project cost when attempting to obtain…

A: Financing refers to a process of raising funds for business activities, and making purchases or…

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

A: Introduction: The given question is based on the notion of rent discounting in real estate finance.…

Q: What incentive dose company have to allocate more of a group purchase price to land than to building

A: The incentive that will have to the company which has to allocate more of a group purchase price…

Q: Explain how risk-return trade-off works in relation to residential and commercial property…

A: The rate of return is the change in the price of an asset, investment, or project over time and can…

Q: Investment property is most likely to:A. earn rent.B. be held for resale.C. be used in the…

A: An investment is an allocation of money in some financial securities, properties, etc. in the…

Q: Hi! help me with this please. Thank you so much! TRUE OR FALSE. EXPLAIN. In a commercial sense,…

A: A property's value is defined as the present worth of future benefits arising from the ownership of…

Q: How should managers consider income tax issues when choosing a transfer-pricing method?

A:

Q: What are the potential tax consequences of selling an old asset in an asset replacement investment…

A: Calculation of potential tax consequences of selling an old asset::: In the given case if the sale…

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: Determine the cost of equity to finance the plant modernization.?

A: The cost of equity is the revenue a firm needs to determine if a venture satisfies the conditions of…

Q: When measuring the investment performance of something as broadly defined as real estate, What one…

A: Introduction: One needs to find some different methods of assessing success to determine how well…

Q: What kind of activities typically have the greatest impact on property values? a.​Federal b.​Local…

A: Factors to consider when pricing a home are: historic sales price, quality of the neighborhood, the…

Q: What would cause the rate of return for an investor that purchases real estate and leases it to the…

A: Corporate Tax is a fee for a company (cash outflow) paid by the government that is the principal…

Q: What are the factor payments for land, labor, and capital?

A: The question is based on the concept of factor payment ,in financial economics factors are consider…

Q: Can depreciation be a profit management tool for the enterprise? Please explain with reason.

A: Definition: Depreciation:  Depreciation means fall in the value of an asset, its a process of…

Q: Which of the following is not considered a capital investment? 18 Multiple Cholce Ask The…

A: As per Bartleby answering guidelines answered only the first question. Kindly post the other…

Q: When determining the value for vacant land, we look to the following data points for financial…

A: Costs are the expenses which are incurred to construct a property. It is a very important measure…

Q: What is the economic rationale for the sales comparison approach? What information is necessary to…

A: Sales comparison approach: It is an appraisal method of real estate in which one property is…

Q: If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at: A.…

A: Held for sale assets are those assets that are acquired for the purpose of sale in short period of…

Q: What are the two types of risk according to the Capital Asset Pricing Model? Which of the two types…

A: The Capital Asset Pricing Model (CAPM) describes the link between systematic risk and expected…

Q: What is the Importance of the Residual Value of Real Estate?

A: RESIDUAL TECHNIQUE IN REAL ESTATE- Residual techniques in business land valuation square measure…

Q: What the characteristics of Real Estate Market and Investment Strategies?

A: Introduction: Real estate generally refers to land along with various types of improvements which…

Q: Which best defines Market Value? Group of answer choices: Whatever the market will bear. Most…

A: Market Value is the value of the asset in the market place. In other words, it is the value at which…