a. Phil is considering selling his dairy. If his dairy generates an annual income of $50,000 and if the rateof interest is 5 percent, what is the present value of his dairy?
b. If the interest rate rises to 7 percent, would he raise or lower his asking price? Explain.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q174: Suppose the demand for the Diane Playing
Q175: a. What will happen to rents earned
Q176: a. If the government places a tax
Q177: Use the concept of location rent to
Q178: William and Harry each own a rock
Q179: Almost every town has a restaurant row,
Q180: What will happen to the land rents
Q181: How does the value of land change
Q183: Explain why unskilled workers earn little economic
Q184: What is a location rent? Give an
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