Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Chapter 7, Problem 21P

You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $5000 and will be posted for one year. You expect that it will generate additional revenue of $500 per month. What is the payback period?

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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 payback​period?
You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $4,200 and will be posted for one year. You expect that it will generate additional revenue of $714 a month. What is the payback period? The payback period is ___ months (Round to one decimal place)
You are thinking of buying a house beside the College which you will rent to students. You expect to receive $1,125 a month in rental income. Your real estate agent estimates that you will be able to sell the property for $225,000 at the end of 24 months. You'd like a return of at least 0.4% per month. What is the most that you should pay for the house, assuming that you will purchase the house today and receive the first (beginning of month) rental payment today. What is the most that you should pay for the property today? (Round to the nearest dollar.)

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Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book

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