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Q - 1 - YOUR REQUIRED ANSWER IS $1,14,022.62
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Question 1 (0.2 points) You just purchased a parcel of land for $70000. If you expect...
Question 2 i. You just purchased a parcel of land for $10,000. If you expect a 12% annual rate of return on your investment, how much will you sell the land for in 10 years? If you want to have $875 in 2.67 years, how much money must you put in a savings account today? Assume that the savings account pays 16% and it is compounded monthly. (2.5+2.5=5 marks)
You just purchased a parcel of land for $47,000. To earn a 13% annual rate of return on your investment, how much must you sell the land for in 4 years? Assume annual compounding. (Round to nearest penny, e.g. 1234.56)
Suppose land is currently selling for $2,500 an acre and that you expect land prices to go up at an annual rate of 6 percent over the next 10 years. a. Ignoring the annual net cash flow generated by this land for the moment, can you justify purchasing this land at this price if your required rate of return is 8 percent and capital gains are taxed at a 20 percent rate? Assume you plan to sell this land 10...
Acquisition of Land and Building On February 1, 2019, Edwards Corporation purchased a parcel of land as a factory site for $120,000. It demolished an old building on the property and began construction on a new building that was completed on October 2, 2019. Costs incurred during this period are: Demolition of old building $ 10,000 Architect's fees 20,000 Legal fees for title investigation and purchase contract 5,000 Construction costs 625,000 Edwards sold salvaged materials resulting from the demolition for...
12-3. Assume that you are about to sell property (a vacant
parcel of real estate) you own but otherwise have no use for. The
net-of-sales-commission selling price for the property is $470,000.
You are willing to finance this transaction over a 16-year period
and have told the buyer that you expect a 15% pretax return on the
transaction. The buyer has asked you for a payment schedule under
several alternatives.
Required:
1. What will be your periodic cash receipt, to...
Assume that you are about to sell property (a vacant parcel of real estate) you own but otherwise have no use for. The net-of-sales- commission selling price for the property is $440,000. You are willing to finance this transaction over a 20-year period and have told the buyer that you expect a 10% pretax return on the transaction. The buyer has asked you for a payment schedule under several alternatives. Required: 1. What will be your periodic cash receipt, to...
Check my work Assume that you are about to sell property (a vacant parcel of real estate) you own but otherwise have no use for. The net-of-sales- commission selling price for the property is $480,000. You are willing to finance this transaction over a 22-year period and have told the buyer that you expect a 14% pretax return on the transaction. The buyer has asked you for a payment schedule under several alternatives. 0.25 points Required: 1. What will be...
please answer all
2pt per question. Show your work clearly to eam partial credit! Read the questions carefully! Suppose you invest $100, $200, & $300 at the end of year 1 to 3 in the next 3 years and earn 6% each year. What is the future value at the end of year 3? tcompute the PV: using CF function: CO0-0, CO1- 100, C02=200 , C03-300, I-6, CPT NPV= FV,=PV (1r)624.36 Suppose you expect your investment to earn 6 %...
Morgan Jennings, a geography professor, invests $89,000 in a parcel of land that is expected to increase in value by 13 percent per year for the next eight years. He will take the proceeds and provide himself with a 18-year annuity. Assuming a 13 percent interest rate, how much will this annuity be? Use Appendix A and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations....
Assume that you are about to sell property la vacant parcel of real estate) you own but otherwise have no use for. The net-of-sales commission selling price for the property is $480,000. You are willing to finance this transaction over a 17-year period and have told the buyer that you expect a 10% pretax return on the transaction. The buyer has asked you for a payment schedule under several alternatives. Required: 1. What will be your periodic cash receipt, to...