b) Johnson is an estate agent and he has been asked by his client to sell for him three productsA,B and C.He agrees to pay him 5% commission on each sale and specifies certainconditions: the state agent must sell property A first within 60 days. If and when A is sold,the agent receives a commision on that sale. He can then either back out at this stage ornominate and try to sell one of the remaining two properties within 60 days. If he does notsucceed in selling the nominated property at that period,he is not given the opportunity to sellthe other. If he does sell it in that period, he is given the opportunity to sell the third propertyon the same conditions. The following table summarises the prices, selling costs (incurred bythe sales agent whenever a sale is made) and the estate agent's estimated probability ofmaking a sale.Propertyi.ii.ABprice of property12,000C25,00050,000selling costs probability of sale4002250.7(0.60.5450Draw up an appropriate decision tree for the state agentWhat is th estate agents best strategy under EMV approach?

Answered: Image /qna-images/answer/a6a87e48-2478-40fb-a16e-d59f3cd1f782.jpg

Answered: Johnson is an estate agent and he has…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

0 1) John emailed Jane enquiring if she is willing to sell her prized breeding dog Max to him. John is currently seeking to boost his stock of breeding dogs and knows the quality of breeding dogs that Jane currently has. He pointed out in his email to Jane, that if she agrees, for her to email to him the price she is willing to sell Max for. Jane subsequently emailed John and stated, "The lowest price she is willing to accept for any of her dog Max is $10,000". John replied immediately that he agreed to buy Max for the $10,000. The next day John visited Jane with the $10,000 and to collect his dog. However, Jane refused to give him Max. John thereafter took legal action against Jane, because he was of the view that he had a valid agreement for the purchase of Max. Advised Jane on whether or not a valid agreement existed between John and her.
Jim offered to buy James’s Porsche motor vehicle. Jim gave James 2 weeks for an answer. Two days after, Jane offered to sell her Porsche motor vehicle to Jim for which he was very excited to purchase because she had the latest model. Jim called James and told him personally that he is no longer interested in purchasing his Porsche. James is very upset, because he was keen to sell. He is of the view that Jim cannot withdraw his offer because the two weeks has not elapsed. He knows that you are a business law student at Open Campus and sought your advice on the matter. Advise James. Will your answer be the same, if Jim failed to communicate to James within the two weeks that he no longer is interested in purchasing James’s Porsche motor vehicle and James accepted on the last day of the end of the two weeks? Required to use the IRAC* method to answer
Jim offered to buy James’s Porsche motor vehicle. Jim gave James 2 weeks for an answer. Two days after, Jane offered to sell her Porsche motor vehicle to Jim for which he was very excited to purchase because she had the latest model. Jim called James and told him personally that he is no longer interested in purchasing his Porsche. James is very upset, because he was keen to sell. He is of the view that Jim cannot withdraw his offer because the two weeks has not elapsed. He knows that you are a business law student at Open Campus and sought your advice on the matter. Advise James.Will your answer be the same, if Jim failed to communicate to James within the two weeks that he no longer is interested in purchasing James’s Porsche motor vehicle and James accepted on the last day of the end of the two weeks?
On January 1, 2021, Crane, Inc. signs a 10-year noncancelable lease agreement to lease a storage building from Holt Warehouse Company. Collectibility of lease payments is reasonably predictable and no important uncertainties surround the amount of costs yet to be incurred by the lessor. The following information pertains to this lease agreement.(a) The agreement requires equal rental payments at the beginning each year.(b) The fair value of the building on January 1, 2021 is $6550000; however, the book value to Holt is $5500000.(c) The building has an estimated economic life of 10 years, with no residual value. Crane depreciates similar buildings using the straight-line method.(d) At the termination of the lease, the title to the building will be transferred to the lessee.(e) Crane’s incremental borrowing rate is 11% per year. Holt Warehouse Co. set the annual rental to insure a 10% rate of return. The implicit rate of the lessor is known by Crane, Inc.(f) The yearly rental payment…
The Shotgun Trifles are musicians specializing in rock songs. They are planning a concert on a floating stage which will sail up and down the Klang river on 5 November. The Kl’s Docks Boatyard Ltd had contracted with the Shotgun Trifles for the rental of cruising boat name Maggie May for that night. On 2 October the KL’s Docks Boatyard Ltd received a better offer from Kuala Lumpur Borough Council to host a floating firework display and inform the Shotgun Trifles that the cruising boat is not available. The Shotgun Trifles express their disappointment but still want to hire the Maggie May.On the morning of 1 October, the Shotgun Trifles had agreed with Fly Promotions Co Ltd to run a series of advertisements on 31 October, 2 and 3 November, using sky-writing at a cost of RM50,000. They ring Fly Promotions Ltd on the afternoon of 1 October to cancel their deal, as they decide that sky-writing is contrary to their ecological credentials and might offend some of their fans. Fly Promotions…
Amanda was to be sent abroad to work for 2 years, therefore agrees to lease out her apartment block to her colleague Brenda for $50 per week for the entire 2 years she is away. A lease was drawn up and before signing Amanda tells Brenda that while she is quite sure of going abroad there may be last minute change of plans in which case the lease is to have no effect. Brenda agrees. And the lease signed makes no mention of this fact. It later happened that Amanda is not sent abroad. Brenda demands that she be given possession of the apartment block, while Amanda denies that is, she is obliged to do so. Give solution to the problem
Dylan negotiates with a buyer for a Seven Eleven store to sell a one-year supply of syrups for use in its Slurpee machine, with a big discount if the buyer will take and pay for the entire quantity in the first month, assuring the buyer that the syrups have an 18-month shelf life before they would become unusable. It turns out that they have a 6-month shelf life and then go bad. The buyer should prevail on a damages claim for misrepresentation. True OR False
Chris, the president of SGC Properties, is considering submitting a bid to purchase property that will be sold by sealed bid at a county tax foreclosure. Chris’ initial judgment is to submit a $5 million. Based on his experience, Chris estimates that a bid of $5 million will have a 0.2 probability of being the highest bid and securing the property for SGC. The current date is July 1. Sealed bids for the property must be submitted by September 15. The winning bid will be announced on October 1. If SGC submits the highest bid and obtains the property, the firm plans to build and sell a complex of luxury condominiums. However, a complicating factor is that the property is currently zoned for single-family residences only. Chris believes that a referendum cold be placed on the voting ballot in time for the November election. Passage of the referendum would change the zoning of the property and permit construction of the condominiums. The sealed-bid procedure requires the bid to be…
Chris, the president of SGC Properties, is considering submitting a bid to purchase property that will be sold by sealed bid at a county tax foreclosure. Chris’ initial judgment is to submit a $5 million. Based on his experience, Chris estimates that a bid of $5 million will have a 0.2 probability of being the highest bid and securing the property for SGC. The current date is July 1. Sealed bids for the property must be submitted by September 15. The winning bid will be announced on October 1. If SGC submits the highest bid and obtains the property, the firm plans to build and sell a complex of luxury condominiums. However, a complicating factor is that the property is currently zoned for single-family residences only. Chris believes that a referendum cold be placed on the voting ballot in time for the November election. Passage of the referendum would change the zoning of the property and permit construction of the condominiums. The sealed-bid procedure requires the bid to…
A 71% leased 71,000 square foot office building in San Diego was acquired in February 2017 by a California LLC for $39 million. The property’s building/land ratio was determined to be 90/10 at the time of acquisition by the LLC’s accountant. The property was sold in February 2023 for $80 million after leasing the building to 92% occupancy. Tax deductible selling costs included a brokerage fee that was 4% of the sale price plus legal fees and other closing costs of $200,000. What was the total amount of the capital gain plus depreciation recapture upon which tax must be paid on the sale? a. $37,600,000 b. $43,000,000 c.. $41,000,000 d. $46,400,000
Liz acquired land on 1 January last year.On 1 March this year she decided to sell the land. Liz entered into a contract of sale on 1 May this year. The sale contract was settled on 1 July this year when Liz handed over the title and possession to the land in return for the sale price being received by her. Which of the following is correct under the “capital gains tax” provisions: Group of answer choices CGT event A1 has not happened. CGT event A1 happened on 1 January last year. CGT event A1 happened on 1 March this year. CGT event A1 happened on 1 May this year. CGT event A1 happened on 1 July this year.
If a price is not determined by the parties in a contract of sale, the buyer is bound to pay________________. Select one: a. the price which the buyer thinks is reasonable b. the price to be determined by a third independent person c. the price demanded by the seller d. a reasonable price

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS