Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

Craine Crossroads has 100 two-bedroom apartments that currently rent for $900 per month. The complex currently has five vacant units, matching the vacancy rate for two-bedroom units in the market area. Additional other income from recreation room fees and parking is $40,000 per year. Next year two new apartments complexes will be completed in the market area, causing the vacancy rates for the existing complexes to rise 7.5%. Other income will remain flat and rent at Craine Crossroads will rise only 2 percent. Management fees are 5 percent of effective gross income. Property taxes are scheduled to go up to $140,000 from the current $130,000. Maintenance, repairs, and replacement are 8 percent of EGI. The other operating expense are expected to cost 3 percent more next year. Those current expenses are:
Salaries: $95,200
Utilities: $50,800
Insurance: $19,100
Supplies: $9,900
Advertising, legal, misc: $14,700

1. Reconstruct this year's operating statements for Craine Crossroads. AND find out the next year's operating statement for Craine Crossroads if the vacancy rate drops to 4 percent next year due to the transfer of troops to the army post nearby. All other projected figures will remain the same.

2. Discussion with lenders indicates that a loan can be obtained for 75 % of a property's market value. Loan terms will probably be 8% interest, 20-year amortization (monthly payments), with the rate renegotiable after 7 years. The property is estimated to be worth $200,000.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M941278

Have any Question? 


Related Questions in Microeconomics

Scenario descriptionbigjet plans to launch a weekly flight

Scenario Description Bigjet plans to launch a weekly flight on a long-haul route. It faces four sets of decisions corresponding to short-run, medium-run, long-run, and very long-run operations. Short Run: In the short ru ...

Econ discussionwith everything discussed with this course

Econ discussion With everything discussed with this course, first watch How we can make the world a better place by 2030. Then, offer your considerations as to whether this could work or not. Within your response, provid ...

Assignmentioverview provide an overview consisting of a

Assignment I. Overview: Provide an overview consisting of a brief description of the chosen company, your chosen product or service, and annual sales. II. Macroeconomic Variables For this section, you will utilize macroe ...

You are an economic consultant and encounter a firm with

You are an economic consultant and encounter a firm with the following data: Quantity of Labor Fixed Costs Variable Costs Total Costs Quantity Marginal Costs 5 $150 20 6 $150 28 7 $150 34 8 $150 38 The wage rate is $8 pe ...

Application evaluation of research resultsno research

Application: Evaluation of Research Results No research project or study is perfect. Studies that contain errors can produce unreliable or misleading results. As a consumer of research, you must be able to determine the ...

Fiscal policy modulewhich has a larger effect on aggregate

Fiscal Policy Module Which has a larger effect on aggregate demand: an increase in government expenditure or an equal-sized decrease in taxes? Explain your answer. To eliminate a recessionary gap, which fiscal policy sho ...

Assignmentin this assignment you will discuss the role of

Assignment In this assignment, you will discuss the role of entrepreneurship in improving the economic condition of countries and individuals and understand the manner in which this perception has spread around the world ...

Assignmentthe paper is on googles business ethics in the

Assignment The paper is on Google's Business Ethics in the area of Sustainability. How does Google contribute or detract from various aspects of sustainability? Sustainable businesses make products and services which fil ...

Meqa assignment 2its been three weeks since you started

MEQA Assignment 2 It's been three weeks since you started working for BioMed and there's still no trace of Selwyn. That means you're still BioMed's resident economic expert. Harry the CEO was pleased with your earlier wo ...

Article analysisplease choose an article from the wall

Article Analysis Please choose an article from the Wall Street Joumal, The Economist, Bureau of Labor/Statistics, Bureau of Economic Analysis etc... or any peer reviewed article for the UOP library. Select one subjects f ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen