A comparable property sold 10 months ago for $89, 500. If the appropriate adjustment for market conditions is negative 0.30% per month with compounding, what would be the adjusted price of the comparable property?
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Question at position 4 A comparable property sold 10 months ago for $89, 500. If the appropriate adjustment for market conditions is negative 0.30% per month with compounding, what would be the adjusted price of the comparable property?
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- Assume that in January 2020, the average house price in a particular area was $267,500. In January 2000, the average price was $186,000. What was the annual 'increase in the price of the average house sold? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Annual increase in selling price 1.89 %#1 - What is the cap rate if a property sold for 1,800,000, the annual PGI is 450,000, the annual EGI is 405,000 and the annual NOI is $180,000.Suppose initially that two assets, A and B, will each make a single guaranteed payment of $400 in 1 year. But asset A has a current price of $280 while asset B has a current price of $320. Instructions: Round your answers to 2 decimal places. a. What are the rates of return of assets A and B at their current prices? Return on assetA =| |percent Return on asset B = percent Given these rates of return, which asset should investors buy and which asset should they sell? Buy asset (Click to solect) v and sell asset (Click to select) b. Assume that arbitrage continues until A and B have the same expected rate of return. When arbitrage ends, will A and B have the same price? (Click to select) Next, consider another pair of assets, C and D. Asset C will make a single payment of $600 in 1 year, while D will make a single payment of $800 in 1 year. Assume that the current price of C is $440 and that the current price of D is $680. c. What are the rates of return of assets C and D at their…
- Lease versus Buy Consider the data in Problem 19-1. Assume that RCs tax rate is 40% and that the equipments depreciation would be 100 per year. If the company leased the asset on a 2-year lease, the payment would be 110 at the beginning of each year. If RC borrowed and bought, the bank would charge 10% interest on the loan. In either case, the equipment is worth nothing after 2 years and will be discarded. Should RC lease or buy the equipment?Returns of a Single Asset. Suppose you have invested in 2 assets whose annual returns are shown in the following table. If you invest $1000 in each asset: What will be the value of each asset at the end of year 5? What is the single annual rate which would yield the same value at the end of year 5? (meaning, what is the geometric average annual rate of return?) Year Asset A Asset B 1 -6.01% -9.98% 2 -10.27% 12.30% 3 13.75% 18.15% 4 24.31% -1.69% 5 20.88% 5.00% please use excelB (1) Calculate monthly returns of ABBV from APRIL 5, 2019, TO APRIL 5,2024 Current price of ABBV is $170. Use the bootstrapping approach (that estimates a return on ABBV during each of the next 12 months by assuming that the return during each month is equally likely to be any of the returns for the latest 60 months (from APRIL 5, 2019, TO APRIL 5, 2024) to estimate ABBV ending Price in one year.
- What will be the Gross Profit at the end of the year a. 49000 b. All the options wrong c. 31000 d. 48000 e. 60700An investor is considering the purchase of a rental house for $120,000. The house generates monthly rent of $1.150 per month with no expected vacancy, and annual operating expenses are expected to be $4,800. The investor expects to hold the property for five years and then hopes to sell for $150,000.Based on these assumptions, what is the expected overall eturn on this investment? (a) 9.27 (b)10.22% (c)10.69% (d)11.48% (e) 12.40%Three years ago, a property was leased for ten years with a fifth-year rent review. The projected growth rate for the rent passing, which is currently 100,000 year, is 3%. What is the anticipated rent at the time of the rent review? Select the correct response: 104,372 106,090 110,838 112,741
- Which of the following would decrease the present value of $1,000 paid n years from today, given the APR is r% compounded m times per year? O A decrease in m O None of those choices OA decrease in r O A decrease in nAssume that at the beginning of the year, you purchase an investment for $7,200 that pays $100 annual income. Also assume the investment's value has decreased to $6,800 by the end of the year. (a) What is the rate of return for this investment? (Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.) Rate of return % (b) Is the rate of return a positive or negative number? Positive O NegativeAssuming the leasehold yield is 2% above the freehold yield, calculate the Years Purchase (YP) dual rate for 10 years if the accumulative rate is 3% and that a comparable freehold property let at full market rent of $40,000 has just been sold for $500,000. Hint: Analyse the market yield from the comparable first and then use it to calculate the required YP. 4.3872 7.3625 6.1250 5.3410
