A businessman is considering building a 25-unit apartment in a place near a progressive commercial center. He felt that because of the location of the apartment it will be occupied 90% at all time. He desires a rate of return of 20%. Other pertinent data are the following

A businessman is considering building a 25-unit apartment in a place near a progressive commercial center. He felt that because of the location of the apartment it will be occupied 90% at all time. He desires a rate of return of 20%. Other pertinent data are the following

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 3. In the following market model, P, is price in time t, S and D are supply and deman functions.…

A: A first-order difference equation is an equation where there is a difference of one period between…

Q: Suppose an incumbent monopoly firm currently earns a profit of $50,000 per period. A potential…

A: The form of market where only one seller exists in the market is known as a monopoly. The monopoly…

Q: The market demand for electric cars is given by: Q = 200-P The cost per unit is constant at $40. a.…

A: Monopoly refers to the market system where only single firm exists in the market. the firm is price…

Q: Is the following game zero-sum? R1 R2 C1 C2 25, 250, 5 5,0 5,5 nonzero-sum zero-sum

A: Zero sum game is when one player can get the payoff only when the another player loses it. So, The…

Q: Expected inflation is 3%, and initially the output gap is zero (percent). A(surprise) tariff…

A: According to the question, it is given that : Expected Inflation = 3% Cost-Push Inflation = - 0.5%…

Q: Michael began selling cloth face masks at the beginning of the pandemic in March of 2020. His…

A: Let us list the formulas that we shall make use of in this numerical: Total Cost TC = Fixed Cost +…

Q: A country has an absolute advantage in the production of a good if it can _____ of the good than…

A: A country is said to have absolute advantage in producing specific good or service if it can produce…

Q: If the effective annual interest rate is 4%, compute the equivalent nominal annual interest…

A: Present value is the value of investment in today's dollar Future value is the value of investment…

Q: Billy Penny is trying to determine how many units of two types of lawn mowers to produce each day.…

A: Two lawn mowers are given:- Standard and deluxe To calculate:- Unit of each product=? Please find…

Q: In the long run, an increase in the nominal exchange rate (foreign currency per unit of domestic…

A: Exchange rate refers to the value of one currency in terms of another currency. Depreciation means…

Q: eter's TV Supplies is considering a merger with Jan's Radio Supply Stores. Peter's total perating…

A: Average total cost is implied as the sum total of all production costs divided by the total quantity…

Q: Using the graph below, shade in the appropriate part of your graph that represents the total…

A: External cost is the cost that is not included in the price and is born by the third party. Given…

Q: Which of the following is a reason for using independently pooled cross sections? O a. To increase…

A: Pooled data is a mixture of cross-sectional and time series data. For example, the collection of…

Q: What is meant by externalities in economics. Explain in detail.

A: An externality basically refers to a cost or benefit of an economic action that is experienced by a…

Q: The government of the Republic of Zambia plans to implement an irrigation project to increase maize…

A: Sunk costs are expenses that have already been incurred and cannot be recovered. No matter how…

Q: Suppose you work for a specialty food store. The owners are considering providing an e-commerce…

A: I would start by analyzing the situation to assess the strengths and weaknesses of such a goal as…

Q: An open-market sale of securities by the Fed results in ________ in reserves and ________ in the…

A: Open market operation is used to change the money supply. Money supply is the amount of money…

Q: The profit function for a company selling two mobile phone models is: π = 140Q₁-2Q₁²+…

A: Profit is the difference between total revenue and total cost. Profit = TR - TC Profit is…

Q: 1. Explain clearly why there is income inequality in the Philippines.

A: In economic terms, income inequality refers to a significant disparity in how persons, groups,…

Q: 10 00:05:28 Differentiate between a firm and an industry. Short Answer Toolbar navigation BIUS ESE…

A: A firm is important in economics because managerial decisions are made at the firm level. In common…

Q: Consider the following linear program: Maximize 30X + 10Y Subject to: 3X + Y ≤ 300 X + Y ≤ 200 X ≤…

Q: Investors For the Future (IFF) LLC provides financial advice to investors in a magazine called New…

A: Initial Cost in today's value = 2500 Annual Operational Cost = 300 Real Interest rate = 5%…

Q: Whose interest should be paramount concern of government trade policy- the interest of producers…

A: I hope that the policy that the government is putting in place will not only help the producers but…

Q: Price Level P3 P₂ P₁ Y₁ LRAS Y₂ Y3 SRAS₂ AD₁ SRAS₁ AD₂ Quantity of Output Starting from P2 & Y3…

A: Aggregate demand is the sum of Consumption, Investment, government spending and net export.…

Q: do you believe that a government setting up tariffs and other restrictions to curb outsourcing is a…

A: Governments establish trade barriers to restrict free trade among economies. Trade barriers are…

Q: Question 27 Refer to Figure 1. Suppose the per-worker production function in the figure above…

A: A production function refers to the maximum set of output(s) that can be produce with a given set of…

Q: The following graph shows the average and marginal revenue curves for a monopolist: Revenues $800…

A: A monopoly is a market structure where there is only one firm in the market for a good or service.…

Q: Refer to the following payoff table: Firm A's Advertising Budget Low Medium High A D G Low $900,…

A: Game theory is the study of interactive decision-making in which the outcome for each participant or…

Q: Refer to Table 10.1. The required reserve ratio is 10%. If the First Charter Bank is meeting its…

A: Reserve are the part of deposit that is kept out of deposit by the bank. Reserve is calculated as…

Q: After careful consideration of the single factor identified in the model above, the researchers were…

A: The regression model analyzes how the independent variable is explained by the independent variable.…

Q: Define the term comparative advantage in the context of economics. Please explain in a well…

A: Comparative advantage is the capacity of an economy to produce a particular item or service at a…

Q: Question 1) a) Which of the following is a common criticism of advertising? O. It makes market entry…

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

Q: In the long run, what are the factors that will lead to lower interest rates? Elaborate answer in…

A: The interest rate is the cost at which commercial banks lend to the general public. With the loan…

Q: 2. The profit function of a firm is 7(x, y) = px+qy-ax²-By², where p and g are the prices per unit…

A: The profit function of a firm represent the profit of firm at various level of price or inputs or…

Q: please computation for the following production function

A: The Law of Diminishing Marginal returns states that in the short run, as more and more variable…

Q: A large school district is reevaluating its teachers' salaries. They have decided to use regression…

A: Regression analysis shows the relationship between two or more variables. This is used to calculate…

Q: 3. A firm has three factories each producing the same item. Let x, y, and z denote the respective…

A: The mathematical link between the expense spent during production of a good and the quantity of that…

Q: The required reserve ratio is 5%. The money multiplier is Group of answer choices 15. 5. 0.5.…

A: Money multiplier shows the number by how much money will be multiplied by the change. The money…

Q: With reference to measurements of the dimensions of the Human Development Index which of the…

A: Human Development index is a tool that collectively measures the life expectancy, education and per…

Q: Please answer full questions including fill in the blanks.

A: When an initial injection into a circular flow results in a larger ultimate rise in real national…

Q: A businessman is considering building a 25-unit apartment in a place near a progressive commercial…

A: Given, Rate of Return = 20% Number of Apartment = 25

Q: Complete the following table by selecting the term that matches each definition on the left.…

A: Labor market equilibrium is where the labor demand curve intersects the labor supply curve Labor…

Q: Determine the maximum number of i* values for the cash flow shown below Expense Cumulative CF…

A: In contrast to an investment with a negative NPV, which would result in a financial loss, one with a…

Q: What factors determine exchange rates? Use relevant examples and charts to support your answer

A: Exchange rates are one of the major indicators of a nation's economic health that are closely…

Q: do you think that the post-carbon transition will lead to a more fundamental reshaping of political…

A: The Oxford Martin Programme on the Post-Carbon Transition aims to improve policymakers' and business…

Q: An increase in the interest rate will Group of answer choices increase the optimal money balance.…

A: The interest rate is the amount charged by the lender in addition to the principal amount. Taking…

Q: If members of an oligopolistic industry wish to maximize profits for the industry, they will likely…

A: Monopolist: A monopolist is a single seller in the market and hence he faces the downward sloping…

Q: Use the IS Equation, S(y) + M(y) = I(r) + X, to derive the slope of the IS curve. Describe the…

A: The combinations of real interest rate (r) and Output(Y) at which G(goods) market is in equilibrium…

Q: Identify the correct degree of price discrimination in each example 1. Wendy's charges senior…

A: In a monopoly market structure, there is only one seller who caters to the whole market. A…

Q: 3 Oil Corn (hrs/barrel) (hrs/bushel) US 3 1 Russia 2 2 The table above shows the worker hours…

A: Opportunity cost is the cost of production of one good in terms of other. Opportunity cost shows…

Question

Analysis.

Solve using formula for present worth and future worth method.Write the answer.

Economic Study Methods
A businessman is considering building a 25-unit apartment in a place near a progressive commercial center. He felt that
because of the location of the apartment it will be occupied 90% at all time. He desires a rate of return of 20%. Other
pertinent data are the following:
• Land investment
.
Building investment
• Study period
Cost of land after 20 years
• Cost of building after 20 years
•
Rent per unit per month
•
Upkeep per unit per year
• Property taxes
• Insurance
P5,000,000
P7,000,000
20 years
20,000,000
2,000,000
6,000
500
1%
0.50%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Subject: Engineering Economy PLEASE ANSWER IMMEDIATELY WITH COMPLETE SOLUTIONS, EXPLANATIONS, AND CASH FLOW DIAGRAM. A father deposited a total amount of P80,500 on two different investments. The first investment earns a rate of simple interest 2.5 times the second investment. In 5 years, the first investment grows P90,745. In 10 years, the second investment grows P40,134. Determine the following: A. INTEREST RATE OF THE SECOND INVESTMENT IN % B. AMOUNT DEPOSITED ON THE FIRST INVESTMENT
- Calculation of unknown interest rate An A&E firm planning for a future expansion deposited $50.000 each year for 5 years into a sinking (investment) fund that was to pay an unknown rate of return. If the account had a total of $460.000 immediately after the fifth deposit, what rate of return did the company make on these deposits? The rate of return that the company made was
ENGINEERING ECONOMICS A businessman invested 50,000 in a company that engages in the manufacture of hollow blocks. In return, he receives 3,000 per year for 5 years. Compute the rate of return on investment. SHOW COMPLETE SOLUTION ON A PAPER
19. Mr Arguillonis considering building a 25-unit apartment in a place near a progressive commercial center. He felt that because of the location of the apartment, it will be occupied 90% at all time. He desires a rate of return of 20%. Other pertinent data are the following: Land investment P 5,000,000 7,000,000 Building investment Study period Cost of land after 20 years Rent per unit per month Upkeep per unit per year Property taxes Insurance 20 years 2,000,000 W & 6,000 500 1% 0.50% Is this a good investment?
GİRNE AMERICAN UNIVERSITY FACULTY OF ENGINEERING ENG ENG304 Engineering Economy Homework 1. If a company has an opportunity to invest $80000 now for 18 years at 16% per year simple interest or 8% per year compound interest, which investment should be made? 2. Calculate the present worth of an expenditure of $3800 per year for 15 years that starts 1 year from now if the interest rate is 12% per year? 3. The company is planning to borrow now $85000 at 10% per year. The company expects to repay the loan with eight equal annual payments at the end of each year, beginning 4 years after the loan is received. Find the amount of equal annual payments. 4. If annual deposits of $6500 are made into a savings account for 22 years beginning 1 year from now, how much will be in the fund immediately after the last deposit if the fund pays interest at a rate of 12% per year? 5. Calculate the present worth of a machine which costs $90000 initially and will have a $18000 salvage value after 11 years.…
SUBJECT: ENGINEERING ECONOMICS (a) Identify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to be used (c)Show the complete solution. The final answer is already provided. Maria loaned an amount of 100,000Php payable in 15 equal quarterly instalments. The first payment was made a year after the money was borrowed. How much in each quarterly installments if rate of interest is 10% compounded bi-monthly?Answer: A = 8,285.46Php
4. An investment generates an annual income of $200,000 with a salvage value of $2,000,000 in 10 years. If the interest rate is 10% per year, how much should one pay for it now?
A trader buys a $1600, 12% quarterly bond for $1800, the bond matures in 3 years and pays interest compounded quarterly, what is the rate of return on the bond compounded quarterly?
Engineering Economics Topic: Perpetuity A certain amount of investment was made annually for 10 years at an interest rate of 6%. On the 14th year, withdrawals of 10,000 per year can be made for 5 years and an infinite withdrawal of 5000 per year after. If the investment will stop at the 5th year, how much should be invested on the 5th year to get the same amount of withdrawals on the same period? All payments and withdrawals are made at the beginning of each year. note: Pls don't copy the answers from Chegg or any source and pls make the solution easy to understand. Thank you!
What is Present-Worth Factor/
A PlayStation is advertised for $500. A credit plan is offered whereby a deposit of 20% may be paid. The rest is to be paid in equal monthly instalments over 2 years at a flat interest rate of 16% per annum. A customer chooses the credit plan. I SEON SPOM SEOM SERON (a) What is the remaining balance for the PlayStation after a deposit of 20% is paid? SEOM SEONSEO 30 Answer: $ (b) How much interest will be paid altogether? Answer: $ (c) (i) How many repayments will there be? FENOMEEN ENON SEPON SENOM SEDOM SESON SEDON SETOM SEDON SERVE to be? 60 60 60 6 6 6 6 6 6 6 Answer: (ii) What is the monthly repayment? BO Answer: $ FON (d) How much will be paid in total for the PlayStation? OXO OXO OXO OX Answer: $ WEROWEROWEROW
A company is organizing a project to build housing units with an estimated investment of one million Million dollars to build (100 houses) The price of the house (20) thousand dollars Payable in unequal installments for (4 years), the first installment is 40% of the price of the house, the second installment is 30%, the third installment is 20%, the fourth installment is 10%, estimated The annual costs are (50) thousand dollars. Calculate the rate of return simple, payback period, and internal rate of return Knowing that the minimum discount rate (8%) and the highest (12%) and whether the project is accepted or rejected.