Jake is preparing a comparative market analysis on a 5-year-old vacant two-story, 10,000-square foot office building on a one-acre property. jake knows that a vacant lot next door of about the same size just sold for $100,000. he also knows that market value for comparable office space today would be $100 per square foot. the owner agrees with jake that his building has experienced a yearly 3% depreciation of its value. what should jake recommend as a selling price.

The sale price would be $ 325,000

Explanation:

Present value of the building= $ 100* 5,000=$ 500,000

( It is taken 5,000 square feet for 2 storey building)

Depreciation = 3/100* 500,000= $ 15,000

Depreciation for five years = $15,000* 5= $75,000

Sale Value of the same size building= $ 100,000

Average  value of the square foot was $20= $100,000/5,000 ( for 2 storey building)

Increase in Price is $ 80 * 5000= $ 400,000

Net Present Value= $4,00000- $75,000= $325,000

The market price or net present value which ever is higher is taken into consideration.

The sale price would be $ 325,000

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi