e. Which of the following has the lowest Business Risk and why? 1. A hotel unit under construction 2. An office building in Nicosia Rented for 30 years 3. A store building in Limassol Rented for 15 years
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- Use the following information to answer questions 1 to 5. A development corporation purchased land that will be the site of a new luxury condominium complex. Management is considering a six month market research study designed to learn more about potential market acceptance of the condominium project. Management anticipates that, if conducted, the market research study will provide one of the following two results. 1. Favorable report (F): A significant number of the individuals contacted express interest in purchasing a condominium. 2. Unfavorable report (U): Very few of the individuals contacted express interest in purchasing a condo- minium. After deciding whether to conduct the market research study, they have the following two decision alternatives. d1 = a small complex with 30 condominiumsd2 = a medium complex with 60 condominiumsFollowing this, a chance event concerning the demand for the condominiums has two states of nature. s1 = strong demand for the condominiumss2 = weak…2 Why do experienced investors view buying properties for appreciation as a poor strategy? A O Because property only appreciates a few percentage points a year. BO The property may not appreciate. It takes many years to realize your profit. DO Buying property for the appreciation is not a poor strategy.am. 124.
- Answer with solutionsScenario Much like the decision to start a business, the decision to attend college is fraught with risk; however, the risk of entering the job market with only a high school diploma is just as great. As the U.S. transformed from a manufacturing-based economy to an economy based on knowledge, high school graduates are often unable to obtain the number of high-paying jobs that were once available. College graduates earn more-some suggest as a much as 60% more over a lifetime than those without a college degree, and have a lower divorce rate, lower blood pressure and stress levels, and higher rates of job stability and satisfaction. However, a college education may not be the right choice for some. There may be a glut of college-educated workers in our workforce, and many careers, including those in cosmetology, do not require a college degree. The U.S. Department of Labor projects jobs for hairdressers, hairstylists, cosmetologists, and skin care specialists to grow 9-17% through the…1. An investor who recently returned from overseas has decided to invest in a venture which has been proposed by a leading investment company.The investor is expected to receive ten (10) sum payments of $5000 at the end of each year for ten times (10) years. However payment increased on by 5% on the second , 10% on the fourth , 15% on the sixth , 20% on the eighth and 25% on the tenth payment . Calculate the sum that should be paid to him now at an interest of 5 % . 2. An office complex measuring 203m^3 has been offered for sale. The cost of replacing the assets and depreciation is estimated $1200m^2 and 10% respectively. I. Calculate the market value price. II. If an extension of 52m^2 has been made to the office complex to be used as residential facility , calculate the capital value of the residential facility at a rate of 900m^2 depression of 4% III.if land comparable land value is assessed at $30000,calculate the value of the subject property.
- The manager at the Overton Hotel in Lubbock believes that the success of the Texas Tech Red Raider Basketball team has an impact on the occupancy rate at the hotel during the first quarter of every year. Below are the number of victories for the Red Raiders in during the last three seasons and the hotel occupancy rate. This year, (year 4) the Red Raiders Basketball Team is expected to win 28 games and the manager at the Overton has asked you to determine their first quarter occupancy rate for the upcoming year (year 4) using associative forecasting. Year Wins First Quarter Occupancy Rate 1 25 2 3 27 31 88.32% 91.25% Ⓒ90.29% Ⓒ86.36% 92.21% 80% 90% 93%A. Assume that you have completed your plans and proformas for the next year of operations. The upcoming year looks promising. What would you most likely do from the following list? a. From your proformas project your company’s weighted average cost of capital and return on assets, and compare the two b. Take a vacation because you have been working so hard c. Purchase a new house for your personal use because the future is looking so good d. Make sure that your company’s weighted average cost of capital exceeds your company’s return on assets, if not, rework your plans and proformas B. Assume that all sales are on account. If the average accounts receivable balance was $1,000,000 and accounts receivable turnover was 12 for the last year of operations, what was sales revenue? a. $10,000,000 b. $15,000,000 c. $12,000,000 d. $6,000,000Civil Engineering consulting firms that provide services to outlying communities are vulnerable to a number of factors that affect the financial condi- tion of the communities, such as bond issues, real estate developments, etc. A small consulting firm entered into a fixed-price contract with a spec home builder, resulting in a stable income of $320,000 per year in years 1 through 4. At the end of that time, a mild recession slowed the develop- ment, so the parties signed another contract for $150,000 per year for two more years. Determine the present worth of the two contracts at an interest rate of 10% per year..