You are a real estate agent thinking of placing a sign advertising your services at a...

Question

Question

You are a real estate agent thinking of placing a sign advertising your services at a...

You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $4,100 and will be posted for one year. You expect that it will generate additional revenue of $779 a month. What is the payback period?

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Payback period=initial cost/additional revenue per month

=4,100/779

which is equal to

=5.26 months(Approx).

Add a comment

Answer 2

Similar Homework Help Questions

You are a real estate agent thinking of placing a sign advertising your services at a...

You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $5,400 and will be posted for one year. You expect that it will generate additional revenue of $1,026 a month. What is the payback period?
You are a real estate agent thinking of placing a sign advertising your services at a...

You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $5,000 and will be posted for one year. You expect that it will generate additional revenue of $500 a month. What is the payback period? The payback period is months. (Round to two decimal places.)
TUONO You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sig...

TUONO You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $5,000 and will be posted for one year. You expect that it will generate additional revenue of $500 a month. What is the payback period? The payback period is months Hlound to one decimal place.)

P 8-14 Similar to) You are a real estate agent thinking of placing a sign advertising...

P 8-14 Similar to) You are a real estate agent thinking of placing a sign advertising your services at a local bus stop The sign will cost 54.800 and will be posted for one year. You expect that it will generate additional revenue of $624 a month. What is the payback period? The payback period is months. (Round to one decimal place.)
P 8-14 (similar to) : Question Help You are a real estate agent thinking of placing...

P 8-14 (similar to) : Question Help You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $5,000 and will be posted for one year. You expect that it will generate additional revenue of $850 a month. What is the payback period? The payback period is months. (Round to one decimal place.)
CASE PROBLEM: Real Estate Agent Bree Wants to Become More Creative Thirty-year-old Bree is a commercial...

CASE PROBLEM: Real Estate Agent Bree Wants to Become More Creative Thirty-year-old Bree is a commercial real estate agent, working for Coalition Properties in Vermont. Although she works for Coalition, the only money she earns is from sales commissions, usually about 6 percent of the sale price of a property. Bree also pays part of the advertising expenses for properties for which she is the listing agent. Bree is earning enough money to keep her satisfied, but the owner of...

Please show work! 2. You are considering investing in a real estate project. Your one ownership...

Please show work! 2. You are considering investing in a real estate project. Your one ownership unit would cost $30,000. The project is expected to generate annual cash flows for you of: $4,500 in year 1, $5,000 in years 2-5, $8,000 in year 6 and $19,000 in year 7. With a discount rate of 8.0%, what is the net present value (NPV) of this investment? Should you invest in this deal? Why or why not?
Your boss, Bonnie, is thinking of selling her real estate brokerage business, "Bon Sell-It Real Estate."...

Your boss, Bonnie, is thinking of selling her real estate brokerage business, "Bon Sell-It Real Estate." She has come to you for help sorting out all the documentation relating to the use and license of tangible and intangible property by the company. Bonnie and Aggie (the company accountant) need to have a list of the types of agreements that should be in place and the correct parties to these agreements. You have worked for Bonnie and the company for 30...
Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted...

Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2018, follows: Elite Realty UNADJUSTED TRIAL BALANCE March 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 26,100.00 2 Accounts Receivable 59,400.00 3 Prepaid Insurance 3,100.00 4 Office Supplies 2,100.00 5 Accounts Payable 12,500.00 6 Common Stock 10,000.00 7 Retained Earnings 37,800.00 8 Dividends 2,000.00 9 Fees Earned 237,900.00 10 Salary and Commission Expense 147,600.00 11 Rent Expense 32,000.00 12...

Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted...

Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2018, follows: Elite Realty UNADJUSTED TRIAL BALANCE March 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 25,300.00 2 Accounts Receivable 58,500.00 3 Prepaid Insurance 3,400.00 4 Office Supplies 2,100.00 5 Accounts Payable 12,600.00 6 Common Stock 10,000.00 7 Retained Earnings 37,100.00 8 Dividends 2,400.00 9 Fees Earned 240,100.00 10 Salary and Commission Expense 147,600.00 11 Rent Expense 35,000.00 12...

You are a real estate agent thinking of placing a sign advertising your services at a...

Homework Answers