subject
Business, 03.03.2020 01:36 gpinney1883

A property owner has set up a contract in which he agrees to sell a warehouse five years from now to the tenant who currently leases the space. The tenant has agreed to continue to pay $10,000 in rent at the end of each year, including year 5, at which time he will purchase the building for an additional $750,000. Assuming the required rate of return on a similar investment is 10% (annual), how much is this deal presently worth to the original owner of the property?A. $1,007,197.20
B. $1,014,779.29
C. $2,281,452.80
D. $2,293,663.00

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 02:40
Which critical success factor improves with reduced cycle time, better quality standards, and improved efficiency when an is is implemented?
Answers: 3
question
Business, 22.06.2019 04:10
Universal containers(us) has an integration with its accounting system that creates tens of thousands of orders inside salesforce in a nightly batch. us wants to add automation that can attempt to match leads and contacts to these orders using the email address field on the insert. us is concerned about the performance of the automation with a large data volume. which tool should uc use to automate this process?
Answers: 1
question
Business, 22.06.2019 10:30
You meet that special person and get married. amazingly your spouse has exactly the same income you do 47,810. if your tax status is now married filing jointly what is your tax liability
Answers: 2
question
Business, 22.06.2019 11:00
Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld
Answers: 2
You know the right answer?
A property owner has set up a contract in which he agrees to sell a warehouse five years from now to...
Questions
question
Mathematics, 14.02.2022 14:00
Questions on the website: 13722362