Answer:
$1,815,000
Explanation:
First we must determine the gross income = $2,000 x 10 units x 12 months = $240,000
minus the vacancy rate = $240,000 x 5% = $12,000
minus the annual expense = $10,200
net income = $240,000 - $12,000 - $10,200 = $217,800
to calculate the maximum amount that the investor should pay we must divide the net income by the expected rate of return = $217,800 / 12% = $1,815,000
When you are calculating a project's price (buying this asset is an investment project), depreciation and debt service are not included in the calculations.
Answer:
Prices ensure an equal distribution of goods and services among consumers.
Explanation:
The price mechanism helps in the efficient allocation of resources. There are a number of functions performed by the price mechanism. Prices send signals regarding resources. An increase and decrease in prices reflect surplus and deficit.
Price balances the demand and supply of a product. Price is inversely related to demand and positively related to the supply of a product. It is determined by the interaction of demand and supply and helps in balancing supply and demand.
For instance, an increase in demand would increase the price, this higher price will motivate the suppliers to increase quantity supplied thus balancing demand and supply.
Price helps in coordinating economic activities and helps buyers and sellers in decision making. However, they do not help in equal distribution of goods and services among consumers.
Answer: c) intrapreneur
Explanation:
Intrapreneur is the person who who belongs to a large firm and acts in the manner of entrepreneur to make innovative development ideas for any project .They help in promotion of production and innovation along with taking measures for functioning in organization.
According to the question,Lachlan Stuart is an intrapreneur who is an employee in a company .He is responsible for methods and ideas development to be ahead of other competing firms.
Other options are incorrect because in-sourced entrepreneur, corporate entrepreneur and multipreneur are not the way in which a person acts like an entrepreneur even through he/she is working for a firm.Thus, the correct option is option(c).
Answer:
Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.
Explanation:
An overhead cost is not directly defined, to be that of material, or labor, or any other unit, overhead include, many factors, electricity usage, machine hours usage, water usage, or the capacity utilization of machinery, and various other factors. Since its computation and allocation is not clear many a times, a single overhead like that of electricity, has many factors, ideal usage of electricity, or machine hours used in production or simply the total cost of overheads for that month or building or etc: and its utilization. In short, to conclude we can state that overhead costs are complex in nature.
All other options are false.
Final Answer
Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.