(Once you have their money, never give it back.) An apartment complex on Ferenginar with 250 units currently has 186 occupants. The current rent for a unit is 1302 slips of Gold-Pressed Latinum. The owner of the complex knows from experience that he loses one occupant every time he raises the rent by 3.5 slips of Latinum. Since "profit is its own reward", the owner wants to maximize his profit so he asks for our help, even though he knows that "free advice is seldom cheap". What should be our recommendation for the optimal rent? Pressed Latinum slips of Gold-

(Once you have their money, never give it back.) An apartment complex on Ferenginar with 250 units currently has 186 occupants. The current rent for a unit is 1302 slips of Gold-Pressed Latinum. The owner of the complex knows from experience that he loses one occupant every time he raises the rent by 3.5 slips of Latinum. Since "profit is its own reward", the owner wants to maximize his profit so he asks for our help, even though he knows that "free advice is seldom cheap". What should be our recommendation for the optimal rent? Pressed Latinum slips of Gold-

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Jason Searcy buys a condominium for $96,200. He makes a 5% down payment, and pays these closing costs: property survey, $315; insect inspection, $190; legal fees, $525; and title insurance, $225. a. What is the down payment amount? b. What are the total closing costs? c. What is the total cash amount needed to buy the condominium?
1.Link wants to make $100,000 after tax on his new venture into selling pizza-on-a-stick, using a "push along" cart at the beach. For each pizza-on-a-stick, he incurs raw material costs of $5 and sells them for $10. He pays a salary to his friend Zelda, who operates the cart for $50,000. If he buys the cart himself, he will incur fixed expenses of $20,000. Or, he can rent the cart and pay $1 to the cart supplier each time he sells a pizza stick. What is his point of indifference? That is, at what volume of pizza sticks is he indifferent about renting or buying the cart? (Insert a number ONLY) 2. Like Link, Chrom sells pizza-on-a-stick at the beach. But Chrom also sells dogs-in-a-pocket, which are hot dogs you can carry with you that have enough preservatives to survive in your pocket for years. For each pizza-on-a-stick, Chrom incurs raw material costs of $5 and sells them for $10. He incurs material costs of $3 for the dogs and sells them for $5. He sells 3 times as many dogs as he…
when real estate agents sell their own, rather than clients', houses, they leave the houses on the market for a longer time (10 days longer on average) and wind up wth better prices. Suppose that real estate agents earn a commission equal to 3% of the sale value of each house that they help selI. Suppose a real estate agent has an offer on a house of $600,000. The agent can get a 4% higher offer with more effort and by leaving the house on the market for a few more weeks. If the agent sells the house now, she will earn a commisslon of S By keeping the house on the market and expending more effort to sell the house, the agent can earn a commisslon of $ Thus, the agent galns for the extra effort and time of keeping the house on the market. Suppose a real estate aqent has an offer on a house that she owns. The agent has a curTent offer of $600,000, but can get a 4% higher offer with more effort and by leaving the house on the market for a few more weeks. Assume that all of the commisslon…
When real estate agents sell their own, rather than clients', houses, they leave the houses on the market for a longer time (10 days longer on average) and wind up with better prices. Suppose that real estate agents earn a commission equal to 3% of the sale value of each house that they help sell. Suppose a real estate agent has an offer on a house of $300,000. The agent can get a 3% higher offer with more effort and by leaving the house on the market for a few more weeks. If the agent sells the house now, he will earn a commission of $___________? . By keeping the house on the market and expending more effort to sell the house, the agent can earn a commission of $__________? . Thus, the agent gains $______________? for the extra effort and time of keeping the house on the market. Suppose a real estate agent has an offer on a house that he owns. The agent has a current offer of $300,000, but can get a 3% higher offer with more effort and by leaving the house on the…
You are the owner of a small bar, The World, and you are considering opening a bakery in a vacant area in the back of the store. You estimate that it will cost you $52,175.00 to set up the bakery and that you will generate $10,758.00 in after-tax cash flows in for the life of the store (which is expected to be 10 years.) The one concern you have is that you have limited parking; by opening the bakery you run the risk of not having enough parking for customers who enjoy your bar. You estimate that the lost sales would amount to $3,230.00 per year and that your after-tax operating margin on sales at the bar is 54.00%. If your discount rate is 14.00%, what is the NPV of opening the bakery?
What information is missing that is necessary for you to solve this problem? "David buys a car for $13,995. He pays $3000 down and pays off the rest of the cost of the car in equal monthly payments. How long does it take David to pay off the car?"
The Bainters want to estimate annual costs for purchasing the home so they can compare them with the costs they estimated for renting. These costs are expenses the Bainters will have only if they purchase instead of rent: monthly mortgage payment $200 per year for HOA fees $1,750 per year for property taxes $1,950 per year for home maintenance $75 per month for water and sewer services $10 per month for trash and recycling services $65 per month for internet $110 per month for homeowners' insurance Approximately how much should the Bainters budget for a year? Your answer should include the total amount the Bainters should budget the calculations or an explanation of how you determined the answer
You own a house that you rent for $1,200 a month. The maintenance expenses on the house average $200 a month. The house cost $89,000 when you purchased it several years ago. A recent appraisal on the house valued it at $120,000. The annual property taxes are $5,000. If you sell the house you will incur $25,000 in expenses. You are deciding whether to sell the house or convert it for your own use as a professional office. What value should you place on this house when analyzing the option of using it as a professional office?
You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $4,700 and will be posted for one year. You expect that it will generate additional revenue of $705 a month. What is the paybackperiod?
You own a piece of raw land in an up-and-coming area in Gotham City. The costs to construct a building increase disproportionately with the size of the building. A building of q square feet costs 0.1*q^2 to build. After you construct a building on the lot, it will last forever, but you are committed to it: You cannot put another building on the lot. Buildings currently rent at $ 97 per square foot per month. Rents in this area are expected to increase in five years. There is a 49 % chance that they will rise to $ 199 per square foot per month and stay there forever and a 51% chance that they will stay at $ 97 per square foot per month forever. The cost of capital is fixed at 11.9% per year. a. Should you construct a building on the lot right away? If so, how large should the building be? b. If you choose to delay the decision, how large a building will you construct in each possible state in five years? (Make sure to state how big of a building you build if the rent is $199/sq…
A young couple has saved up $12,000.00 for a down payment on a home. They are currently paying $1700.00 per month to rent a condo. The couple is pre-approved for a 20-year mortgage at 7.9% and their realtor estimates that they will need to set aside $3500.00 for taxes and other costs at the time of sale. Part: 0/4 Part 1 of 4 (a) What is the price of the most expensive home they can buy without raising their monthly housing payment? The maximum price of a home the couple can afford is $. X 3 Espanol M
Mr.Salim runs a carpentering business in his village. Mr.Salim’s business has expanded, with revenue now reaching OMR 40,000 per year. Mr. Salim is considering moving hisbusiness into town centre premises, and employing another carpenter, who would cost OMR 6,000 per year.He has found premises that could be leased for OMR 3,500 per year payable in advance. Mr. Salim currently advertises his business in the local newspapers and business directories, at a cost of OMR 1,000 per year payable in advance. Mr. Salim will carry on with this advertising, but he will also need extensive ‘one off’ advertising to promote the move to the new premises. This ‘one off’ advertising in the local newspapers will cost OMR 2,000, which will be paid immediately. In addition to advertising the move in the local newspapers, Mr. Salimcould advertise the move on the local radio. The cost of this would be OMR 5,000, also payable immediately. Mr. Salimbelieves that having a town centre presence and the associated…

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