You inherited a run-down house in Chicago.There is an active market in properties of this type,and similar properties currently sell for $100,000.If rented,the property can deliver cash returns of $12,000 per year forever.If the appropriate discount rate is 15%,how much is the house worth?
A) $80,000
B) $100,000
C) $150,000
D) $180,000
Correct Answer:
Verified
Q25: You inherited 100 acres of Iowa farmland.There
Q27: The manufacture of herbal health tonic is
Q28: According to Warren Buffett,which of the following
Q29: The manufacture of folic acid is a
Q29: Allen Technology Company is currently valued at
Q32: Which of the following is NOT one
Q35: To best understand a proposed positive net
Q37: The NPV of a project can be
Q38: When markets become competitive, economic rents
A)increase.
B)decrease.
C)remain the
Q39: The annual demand (in millions)for baseballs is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents