consultancy services that would earn him around $2,500. If Ahmed decided to go on the camping trip what would be the incremental cost of that ?($) decision
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- what is the answer?Consider a plot of land. You can construct an office building at a cost of $5m or a hotel at a cost of $7m. For the office building you expect an NOI in year 1 of $240,000 and an NOI in year 2 of $400,000. For the hotel you expect an NOI in year 1 of $360,000 and an NOI in year 2 of $500,000. After year 2, the NOI will grow at 4% for both properties. Your discount rate is 10% in both cases. What is the estimated value of your plot of land?Kaleo has made up his mind—he wants a pool in the family’s backyard! He figures his kids and spouse will be thrilled. However, to cover the cost of the pool, they’ll have to pack up and live away from home for a few weeks during the summer to rent their home to vacationers. He crunched the numbers based on the following estimates. 1. Cost of pool/installation $50,000 2. Life of the pool (no salvage value) 20 years 3. Annual net cash inflows from renting (net of cash expenses for renting and pool maintenance) $6,500 4. Tax rate 23% 5. Average rate of return 8% Kaleo’s daughter, Sarah, found the above information written on a sheet of paper in his office, along with the following notes. “This is a no-brainer! We’ll recover the cost of this pool in just 7 years, even though we plan to live here until we’re old and gray, or at least as long as the pool hangs on. If we can rent our house out for just 3 weeks each year, it’ll be almost pure profit that we can put toward paying off…
- h.- Suppose that there is a choice to make between three lands to purchase. Land-A purchase price is $150K. Land-B purchase price is $120K but there is a 30% chance that some extra administrative tasks at a cost of $40K will be needed. Land-C purchase price is $80K but there is a 70% chance that you need to construct a road with an estimated cost of $80K. Develop a decision tree to estimate the final costs for each of the lands. Which land you would recommend?Good day! I need your help tutor please answer the question attached below. The answer is already provided, which means that will be your basis if your answers are correct or not. Ps. In your solution, you identify the given and the what is being asked in the problem and I want to see the formula that you used.Lastly, box the final answers. Thanks in advance tutor :)Please Show me the calculations!! A real estate investor is considering the purchase of an apartment building that currently provides income of $30,000 and is expected to grow in income by 3% for the next 4 years. You would receive income from today, year 0, through year 4. At the end of year 4, they expect to sell the property for $800,000. The investor has a discount rateof 6%. How much should an investor be willing to pay for this property?
- 3. A real estate company is considering the investment on two types of apartments: condo apartments and two-bedroom apartments. The expected profits for the two types at different scenarios and the corresponding probabilities are shown in Table 3. Before starting to profit, the company should first invest on the two types of apartments for 20 billion RMB on A1 and 15 billion RMB on A2 respectively. Please decide by calculation which type of apartments is worth investing for this company? Table 3 Expected profits by different scenarios (The profits are in billion RMB Yuan) Expected Sale Forecast Good Normal Bad Types/Probabilities 0.5 0.3 0.2 Condo (A,) 50 25 15 Two-bedroom (Az) 80 0. -25 3/3 1Lusing excelAssume you've graduated and get the dream job and need transportation to go to work (problem definition)-so you need to purchase a car (objective).You would like to analyze your financial options to purchase the car you want andat the same time spent the minimum possible (decision making criteria).You prefer to pay around 3000$/year (requirements)but if it helps to reduce the cost you can pay more.Explore the options of (compare alternatives to save $) 1- Getting a loan of 20K over 5 years at 5%, how much is your yearly payments. Hint: (=PMT(i,n,p) ) 2- Searching for a better loan at 4%- how much you save? (compare total interest paid I1-I2)3- Try to pay up your loan quicker like 3 years- See how much you save in Interest paid. (compare total interest paid ) 4 - Negotiated the purchase down to 18.5K and see how much you save in interest. (compare total interest paid as well as the total paid) 5- Put down more money at the…15. Salim is financial advisor and consultant. He wishes to go to Salalah during Al Khareef season. He is considering two alternatives. The first one is to drive to Salalah. This option is expected to cost Salim about $ 150 in fuel cost. Salim also can invite three of his friends to join the trip. Each one of them is expected to pay Salim $ 40. The other option for Salim is to use Muwasalat bus service. Under this option Salim will also need to rent a car once he arrives to Salalah. The total cost of this option including the bus ticket and the car rental is $ 400. Because the bus trip takes about 11 hours, Salim can use the time to provide consultation services that are expected to earn him $ 500 in total. If Salim decided to use the bus to Salalah, what would be the differential revenue ($) of the that option?