The owner of a comer lot wants to find a use that will yield a desirable return
Question:
The owner of a comer lot wants to find a use that will yield a desirable return on his investment. After much study and calculation, the owner decides that the two best alternatives are:
If the owner wants a minimum attractive rate of return on his investment of 6%, which of the two alternatives would you recommend?
Transcribed Image Text:
Build Soft Ice Cream Build Gas Station Stand $120,000 First cost $80,000 Annual property taxes 3,000 5,000 11,000 Annual income 16,000 Life of building, in years 20 20 Salvage value
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 40% (15 reviews)
Year A Gas Station B Ice Cream Stand B A 0 80000 1200...View the full answer
Answered By
Sultan Ghulam Dastgir
The following are details of my Areas of Effectiveness English Language Proficiency, Organization Behavior , consumer Behavior and Marketing, Communication, Applied Statistics, Research Methods , Cognitive & Affective Processes, Cognitive & Affective Processes, Data Analysis in Research, Human Resources Management ,Research Project,
Social Psychology, Personality Psychology, Introduction to Applied Areas of Psychology,
Behavioral Neurosdence , Historical and Contemporary Issues in Psychology, Measurement in Psychology, experimental Psychology,
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
You are the owner of a privately owned, moderate sized company. The business was founded over 20 years ago and has experienced impressive growth and profitability. The only frustrating thing,...
-
Two months ago, the owner of a car dealership (and a current football star) significantly changed his sales managers compensation plan. Under the old plan, the manager was paid a salary of $6,000 per...
-
You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your No Haggle sales policy. Last year, your dealership earned record profits of $1.5 million....
-
Use the correlation matrix from Problem 1 to answer the following questions. a. Compute the semipartial rSBP(SMK|AGE). b. Compute the semipartial rSMK(SBP|AGE). c. Compare these correlations to the...
-
Use the Rational Zero Test to list the possible rational zeros of f. Verify that the zeros of f shown in the graph are contained in the list. 1. f (x) = x3 + 2x2 x - 2 2. f (x) = x3 4x2 4x + 16 3. f...
-
In a recent speech, the governor of your state announced: One of the biggest causes of juvenile delinquency in this state is the high rate of unemployment among 16 to 19 year olds. The low wages...
-
Why is it a good thing for a highly profitable company that has reached maturity to carry a lot of debt?
-
The financial condition of White Co. Inc. is expressed in the following accounting equation: Required a. Are dividends paid to creditors or investors? Explain why. b. How much cash is in the Retained...
-
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $600,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
In his will, Frank's uncle has given Frank the choice between two alternatives: Alternative 1$2000 cash Alternative 2$150 cash now plus $100 per month for 20 months beginning the first day of next...
-
Two alternatives are as follows: If 5% is considered the minimum attractive rate of return, which alternative should be selected? Year A B -$2000 -$2800 +800 +1100 23 +800 +1100 A +800 +1100
-
Draw the two stereoisomers of 1,3-dimethylcyclobutane, and classify the pair according to the categories listed in A, B, and C above.
-
ASSIGNMENT QUESTION Choose an organization of your choice from the sectors mentioned below to answer questions (a), (b) and (c). Information systems have become the backbone of most organizations....
-
Control is the process by which management ensures that the organisation's goals are accomplished or that actual performance compares favourably with predetermined standards. Explain the importance...
-
Van Persie Corp. sponsors a defined-benefit pension plan for its employees. The following balances related to the plan exist on December 31, 2022. Plan assets (market value) Projected benefit...
-
Create a charter for an improvement project involving a healthcare process with which you are familiar. Complete as many sections of the charter as possible. Key features that should be included are...
-
The increasing of Halal food and cosmetics demand in South Korea has opened opportunities to Muslim country companies to expand their business in South Korea. Assuming you are working as a manager...
-
A Bryon Ltd has held \(1,500,000\) shares in Carlyle Ltd for many years. At the date of acquisition, the reserves of Carlyle Ltd amounted to \( 800,000\). On 31 March 19X6 Carlyle Ltd bought 400,000...
-
A test car is driven a fixed distance of n miles along a straight highway. (Here n Z+.) The car travels at one mile per hour for the first mile, two miles per hour for the second mile, four miles...
-
Use the guidelines of this section to sketch the curve. y = e sin x Data from section 4.5 GUIDELINES FOR SKETCHING A CURVE The following checklist is intended as a guide to sketching a curve y = f(x)...
-
A Los Angeles company is planning to market an answering device for people working alone who want the prestige that comes with having a secretary, but who cannot afford one. The device, called...
-
A highway contractor is considering buying a new trench excavator that costs $250,000 and can dig a 3-foot-wide trench at the rate of 16 feet per hour. With the machine adequately maintained, its...
-
A small children's clothing manufacturer is considering an investment to computerize its management information system for material requirement planning piece-goods coupon printing, and invoice and...
-
Zhang Company, an IFRS company sold $8.000.000 of 6% 3-year bonds on January 1, 2016 The bonds pay interest each December 31 cost the company $30,000 in bonde costs The bonds weld at par What the...
-
Required information Benchmark Assignment-Coca-Cola Co. & Pepsico Inc. You will need to use the data below from the two companies to calculate problems and answer the following questions: Coca-Cola...
-
Summer Corporation board of directors have approved payment of a cash dividend of $2.00 per share. The dividend was declared on November 1, 2020 for all stockholders' of record as of December 1,...
Study smarter with the SolutionInn App