Moving to the next question prevents changes to this answer.Question 7Question 7 of 24A newly-built business property, containing space for a store and two offices, can be purchased for P1,500,000. A prospective buyer estimates that during the next 12 years he can obtain annual rentals of at least P568,000 from the property and that the annual out-of-pocket disbursements will notexceed P75,000. He believes that he should be able to dispose of the property at the end of 12 years at not less than P800, 000 Annual taxes and insurance will total 3.5% of the first cost. Assume he has sufficient equity capital to purchase the property, and that the average return he isobtaining from his capital is 20% using sinking fund method. What is the RoR (in %) of the investment?Do not include units in your final answer.Round off to 1 decimal point.28.2Question 7 of 24

Given, Initial Cost = P1,500,000Time (n) = 12 yearsAnnual Rent = P568,000Out-of-Pocket Disbursement…

A newly but business property containing space for a store and two offices, can be purchased for P1.500.000 A prospective buyer estimates that during the next 12 years he can obtain annual rentals of at least P566.000 from the property and that the annual out of pocket dobrements will not 75,000 F 3. He that he s to property at years at not of cost. Assume he equity capital to purchase property, that average he is the obtaining from his capital is 20% using sinking fund method What is the RoR (in %) of the investment? De not include units in your final answer. Roung off to 1.decimal point.

A newly but business property containing space for a store and two offices, can be purchased for P1.500.000 A prospective buyer estimates that during the next 12 years he can obtain annual rentals of at least P566.000 from the property and that the annual out of pocket dobrements will not 75,000 F 3. He that he s to property at years at not of cost. Assume he equity capital to purchase property, that average he is the obtaining from his capital is 20% using sinking fund method What is the RoR (in %) of the investment? De not include units in your final answer. Roung off to 1.decimal point.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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