--%>
Assignment Help - homework help

Equilibrium Market Price by Rate of Return

Assume that an existing apartment complicated is predicted to generate a consistent net of $1,250,000 cash flow per year into rent, after deducting all recurring variable costs (for example, taxes, utilities, and maintenance). When the riskiness and liquidity of that financial investment warrants a 12.5 percent interest rate (as rate of return), in that case the equilibrium market price of its property would be: (1) $1,250,000. (2) $8 million. (3) $10 million. (4) $12.5 million. (5) $125 million.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : Supply curve for perishable goods The

    The supply curve for perishable goods which, once produced, can’t be stored in inventory is generally functioned as perfectly price inelastic into the: (i) short-run. (ii) intermediate period. (iii) long-run. (iv) market period. (v) fiscal year

    		•
  • Q : Price elasticity of demand on mid point

    When 900 tons of gourmet coffee beans are sold per month at $5.40 per pound but sales drop to 500 tons while its price rises to $7.20 per pound, the price elasticity of demand for that coffee based upon the mid-point or say arc formula is: (i) 2.0. (i

    		•
  • Q : Estimate price cross-elasticities of

    When the prices rise of Comfort shoes rise through two percent, causing Wonder sock sales to fall through six percent, these goods are _____, and _____ is about the cross price elasticity of demand. (1) luxuries;  6. (2) necessities; 2. (3) subst

    		•
  • Q : Determine total cost of

    This profit-maximizing competitive firm's total cost as TC=TFC+TVC, as in demonstrated figure can be calculated as area: (i) 0P3fq4. (ii) P2P1de. (iii) P3P2ef. (iv) 0P<

    		•
  • Q : Higher value for the Gini index A

    A higher value for Gini index tends to be related with: (w) decreases in the equality of the distribution of income or wealth. (x) decreases in the population’s total amount of income or wealth  (y) reduced overall curvature of the Lorenz c

    		•
  • Q : Determine absolute value of price

    Since this demand curve for DVD games is a straight line, and its slope: (w) is constant, although the absolute value of price elasticity of demand falls as output increases. (x) varies to compensate for changes within elasticity. (y) is constant, alt

    		•
  • Q : Get economic profit by economic rent

    When you quickly attain economic profit because you build a store on rented land which turns out to be located conveniently for potential customers, in that case: (w) profit will increase when you buy the land after your lease expires. (x) rent will a

    		•
  • Q : Price of input influencing goods supply

    Elucidate how does change in price of input influence the supply of a good.

    		•
  • Q : Market interest rates for different

    Market interest rates for different financial assets are positively associated to the: (w) expected rate of inflation. (x) liquidity of the assets. (y) efficiency of financial intermediation. (z) preferences of people about consuming in the future ins

    		•
  • Q : Borrower and lenders in financial

    Financial institutions like banks perform as intermediaries. They lend their savings of depositors to final borrowers, charging more interest to borrowers than they pay to depositors, who are the eventual providers of loans. How does it decrease the <

    		•