Assume the current rent is also equal illustrate one would, Ask an Expert

Economics

Q. Assume as a "rule of thumb" one commonly assumes which the value of land equals the 14-fold of its annual rental income. Assume the current rent is also equal Illustrate one would commonly expect for the future.

(a) Illustrate what is the implicit discount rate for such a "rule of thumb?"

(b) Now assume the discount rate changes to 5.5%. Illustrate "rule of thumb" ratio between land value and annual rental income would you expect? Calculate.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9159520

Have any Question?Write your Review or question?

Related Questions in Business Economics

Practical exercise 1assume the demand for teachers ld in a

Practical Exercise 1: Assume the demand for teachers (Ld) in a school is given by the following equation: W = 1700 - 2L D and the supply of teachers (L S ) depends on whether the school is a public school or private sch ...

What is the result of a price ceiling and why do some

What is the result of a price ceiling? And why do some consumers tend to favor price ceilings and others tend to oppose it?

What is the effect of changes in gasoline prices on the

What is the effect of changes in gasoline prices on the demand for restaurant meals? Is gasoline an economic complement of restaurant meal Are restaurant meals an economic complement of gasoline

A worker earns 15 per hour at a plant and is told that only

A worker earns $15 per hour at a plant and is told that only 2.5% of all workers make a higher wage. If the wage is assumed to be normally distributed and the standard deviation of wage rates is $5 per hour, the average ...

A monopolist faces a market demand curve given by py 100 y

A monopolist faces a market demand curve given by P(y) = 100 y. Its cost function is c(y) = y 2 + 20. (a) Find its profit - maximizing output level y and the market price p(y ). (b) Calculate its total revenue, total cos ...

In australia the overall five-year survival rate for breast

In Australia, the overall five-year survival rate for breast cancer in females is 90%. A random sample of 420 breast cancer patients in a rural region was randomly selected and followed up after 5 years. The results show ...

In a certain state pickup trucks account for 21 of the

In a certain? state, pickup trucks account for 21?% of the? state's registered vehicles. If 100 registered vehicles are selected at? random, what is the expected number of pickup? trucks?

What is the difference between a linear quadratic and cubic

What is the difference between a linear, quadratic, and cubic regression analysis? Please provide a reference.

Fifty-three percent of employees make judgements about

Fifty-three percent of employees make judgements about their co-workers based on the cleanliness of their desk. You randomly select 8 employees and ask them if they judge co-workers based on this criterion. The random va ...

Describe five changes in the vaiables that will cause

Describe five changes in the vaiables that will cause demand for a product to increase, shifting the demand curve to the right?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert