Limiting the amount of foreign-made refrigerators that may be brought into the country is one strategy to safeguard American refrigerator manufacturers from worldwide competition. An example of an import quota would be this. As a result, the correct term is an import quota.
What is an import quota?An import quota is a sort of trade restriction that establishes a physical limit on the amount of an item that may be imported into a nation over a specific time period. Quotas, like other trade restrictions, are generally implemented to benefit the economy's producers of an item (protectionism).
For example, China has a quota of 300,000 tonnes per year for Cambodian rice exports.
To learn more about trade, click
https://brainly.com/question/12250489
#SPJ4
comparing amounts selected from the payroll account analysis for payroll accruals to supporting documentation would provide evidence primarily for which assertion?
Existence would be shown by comparing amounts chosen from the payroll account analysis for payroll accruals to supporting documentation. The accounting function examines the reconciliation of employee perks including gratuities and superannuation plans.
The accounting function known as payroll accounting oversees the administration, documentation, calculation, and analysis of employee remuneration. Along with determining the employee salaries, they also work on calculating taxes and benefits.
When a corporation records the compensation of its employees, including their gross wages, salaries, bonuses, commissions, and other earnings, payroll taxes, such as federal income taxes, are withheld.
To know more about payroll accounting, click here:-
https://brainly.com/question/16201540
#SPJ4
What is the term applied to the excess of net sales over the cost of goods sold?.
Answer:
Explanation:
Excess of sales over cost of goods sold in an accounting period is termed as Gross Profit.
what term refers to an intense improvement process in which a team uses all its resources over a short period of time?
Kaizen is a term refers to an intense improvement process in which a team uses all its resources over a short period of time.
Kaizen. "concept of continuous improvement" Implies little, insignificant adjustments over time that add up to a better process in general. an aggressive and speedy improvement process in which a team or department devotes all of its resources on a short-term improvement project
Kaizen (Continuous Improvement) is a business technique in which personnel at all levels collaborate proactively to produce frequent, incremental improvements to the production process. There are five Fundamental KAIZENTM Principles that are integrated in every KAIZENTM tool and behavior. Know your customer, Let it Flow, Go to Gemba, Empower People, and Be Transparent are the five principles.
To know more about "Kaizen" refer to this link:
https://brainly.com/question/27067619?referrer=searchResults
#SPJ4
at the beginning of 2024, angel corporation began offering a 1-year warranty on its products. the warranty program was expected to cost angel 3% of net sales. net sales made under warranty in 2024 were $200 million. five percent of the units sold were returned in 2024 and repaired or replaced at a cost of $4.6 million. the amount of warranty expense in angel's 2024 income statement is:
The amount of warranty expense in angel's 2024 income declaration is equal to $136 million.
What is a assurance expense?Warranty cost is an price related to the repair, replacement, or compensation to a person for any product defects. In other words, a supplier or manufacturer is dedicated to repair or exchange a bought product all through a sure time length if it breaks or does no longer characteristic correct according to the phrases of the warranty.
When Should assurance price be recorded?Therefore, a company should file in the duration of the sale the estimated value of repairing or replacing the product throughout the guarantee period. That expected value is recorded as a legal responsibility on its balance sheet and as an rate on its income statement.
Learn more about warranty expense here:
https://brainly.com/question/15415456#SPJ4for a business to be successful in the early growth stage of the organizational life cycle, the two important things that must happen are .
For a business to be successful in the early growth stage of the organizational life cycle, the two important things that must happen are .
the founder or owner of the business must start transitioning from his or her role as the hands-on supervisor to a more managerial role.Increased formalization must take placeWhat is the growth stage of the organizational life cycle?The can be described as the stage in the business process which requires good management with alot of supervision.
It should be noted that this stage can determine the success of the business because once the business fails at this stage there is usually alot of loss that will follow.
Therefore, at this stage the owner of the business must be up and doing.
Learn more aboutbusiness at:
https://brainly.com/question/26106218
#SPJ1
paola purchased an office building on january 5, 2020, for $450,000. $30,000 of the price was for the land. on september 25, 2021, he sold the office building. what is the cost recovery deduction for 2021 rounded to the nearest dollar
The cost recovery deduction is $10768.80
The amount of a deduction permitted for tax purposes due to the use of assets in operational activities or used to generate income is known as a cost recovery deduction. A cost recovery method is a depreciation, depletion, or amortization.
The cost recovery deduction for 2015 is $10,768.80.
The office building is a non-residential property, and thus the recovery period is 39 years. Further, the cost recovery rate for the property having a recovery period of 39 years is 2.564%.
Calculating the cost recovery deduction:
Cost recovery deduction = (Purchase price - cost)*Cost recovery deduction
= (450000-30000)*2.564%
= $10768.80
Learn more about cost recovery deduction:
https://brainly.com/question/28384742
#SPJ4
asset retirement obligations: multiple choice are liabilities associated with the restoration of a long-term asset. increase the balance in the related asset account. are measured at fair value in the balance sheet. all of these answer choices are correct.
All of these answer choices are correct.
Asset retirement obligations (AROs) are contractual requirements for the eventual removal of machinery or the cleanup of hazardous materials from a leased location when tangible, long-lived assets are retired.
Asset Retirement Obligations (ARO) are frequently linked to sectors like mining, nuclear energy, oil and gas, and waste management. Examples specific to the oil and gas sector include plugging and abandoning oil wells and removing underground storage tanks.
Obligations related to asset retirement are initially recorded at fair value in the period in which they are incurred, provided that it is reasonably possible to estimate the size of the liability.
To know more about asset retirement obligations refer to:
https://brainly.com/question/14298631
#SPJ13
the investment and capital spending boom of the late 1990s most likely resulted in a(n) steeper aggregate supply curve. flatter aggregate supply curve. decrease in aggregate supply. increase in aggregate supply.
The late-1990s investment and capital spending boom most likely resulted in a rise in aggregate supply.
Investment is the commitment of funds to the purchase of an asset with the goal of increasing its value over time. Investment necessitates the sacrifice of some current item, such as time, money, or effort. In finance, the goal of investing is to earn a return on the invested asset. The return may consist of a gain (profit) or loss realized through the sale of a property or investment, unrealized capital appreciation (or depreciation), or investment income such as dividends, interest, or rental income, or a combination of capital gain and income.
Investors, particularly novices, are frequently urged to diversify their portfolio.
Learn more about aggregate here
https://brainly.com/question/29022331
#SPJ4
according to the leadership grid, a leader who treats employees as tools to accomplish tasks most likely falls under which type of leadership style?
In accordance to the management grid, a chief who treats personnel as tools to accomplish duties most likely falls under Authority compliance.
The Leadership Grid is a mannequin of behavioral leadership developed in the Nineteen Sixties to measure situation for manufacturing in opposition to situation for people. The grid identifies five types of leaders: Impoverished, Produce or Perish, Middle of the Road, Country Club, and Team
Which one of the following leadership patterns is according to the Leadership Grid the one best management style for all situations?According to the Blake Mouton model, Team Management is the most tremendous management style. It displays a chief who is passionate about their work and who does the exceptional they can for the human beings they work with.
Learn more about leadership style here:
https://brainly.com/question/1232764#SPJ4which of the following statements does not accurately reflect the relationship between securities and synthetic forward contracts?
The link between stocks and synthesized forward contracts is not correctly reflected by the formula prepaid ahead = forward - zero coupon bond.
Defining "bond,"A bond is a borrower's guarantee to pay a borrower their principal amount plus, typically, interest on a loan .Businesses, regional and community governments, and governments all issue bonds.
How do bonds function?I bonds start earning interest on the first of the month after you purchase them. Every six months, we add the bond's interest earnings to its principal value, which is done twice a year. The bond now has an added features (old value plus interest received).
To know more about bonds visit :
https://brainly.com/question/17405470
#SPJ4
Raheem is currently working as a financial analyst earning $75,000 a year and is considering quitting his current job to start an art gallery. The estimated annual revenue from the art gallery is $175,000. The annual cost of labor, advertising, and acquiring the art inventory is $125,000. What are raheem’s accounting and economic profits if he opens the art gallery?.
Raheem's accounting profit is $50,000 and his economic profit is $-25,000.
What is the accounting and economic profit?
Accounting profit is the difference between the revenue earned from a business and the explicit cost incurred in running the business. Explicit cost includes the amount expended in running the business.
Accounting profit= total revenue - explicit cost
Accounting profit = $175,000 - $125,000 = $50,000
Economic profit is the difference between accounting profit and implicit cost. Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Economic profit = accounting profit - implicit cost
Economic profit = $50,000 - $75,000
Economic profit = -$25,000
To learn more about accounting profit, please check; https://brainly.com/question/15036999
#SPJ1
the apple ipod was readily accepted by consumers in part because it was an easy way to listen to music anywhere, with substantial improvements over portable cd players. this is an example of a relative
Customers quickly embraced the Apple iPod because it was a convenient method to listen to music anywhere and offered significant advancements over portable CD players. It is an example of relative advantage.
What is relative advantage?In terms of particular advantages or characteristics, relative advantage refers to the extent to which consumers perceive a new brand to be superior to current options. A new brand in a new product area may have a relative advantage, but this is not always the case when measured against objective criteria. The adoption rate of an innovation is positively connected with the relative benefit. It indicates that, assuming all other factors remain constant, the faster an innovation's relative benefits assimilate to existing products, the faster it will be adopted.
In general, a new brand has a relative advantage to the extent that it provides:
the promptness of rewardgreater efficiency compared to alternative choicestime and effort savingsTo know more about, relative advantage, visit :
https://brainly.com/question/28507258
#SPJ4
if the one-year forward rate for the euro is $1.07, while the current spot rate is $1.05, the expected percentage change in the euro is percent. a. 1.90 b. 2.00 c. -1.87 d. none of these are correct.
The expected percentage change in the euro is percent, (a)1.90.
How is the current spot rate determined?The price quoted for immediate settlement on an interest rate, commodity, security, or currency is known as the spot rate. The current market value of an asset that is available for immediate delivery at the time of the quote is known as the spot rate, commonly referred to as the "spot price."
The current market rate for exchanging one currency for another is known as the spot exchange rate. Typically, the currency market determines the spot rate. The discount rate needed to bring a zero-coupon bond's present value (PV) down to its price is used to determine the spot rate.
Decrease = Original - New
Decrease = $1.07 - $1.05 = $0.02.
percentage change = Decrease/original × 100
percentage change = 0.02/1.07 × 100
percentage change = 2/1.07
percentage change = 1.8691588785
percentage change = 1.90%
To learn more about expected percentage change, visit:
https://brainly.com/question/22713857
#SPJ4
If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year?.
The company's margin will reach 15 percent this year if the company pursues the investment opportunity. It can be calculated by dividing net operating income with sales.
Marginal cost generally can be defined as the value to provide one additional unit of manufacturing. Marginal cost also can be defined as a crucial idea in price accounting as marginal value helps decide the maximum green stage of manufacturing for a production process. Marginal cost can be calculated by determining what prices are incurred if best one extra unit is manufactured and also what costs are incurred if one extra unit is best.
The margin will be:
Current sales revenue is $1,600,000
Additional sales revenue is $520,000
Total sales revenue is $2,120,000
Net Operating income is $240,000
To find the amount of margin we use this formula:
Margin = Net operating income/sales
Margin = $240,000/$1,600,000
Margin = 0.15
Margin = 15%
Hence, the company's margin will earn 15% in this year.
The complete question has been attached, you can see it in the attachment.
Learn more about margin at https://brainly.com/question/7781429
#SPJ4
as a given job is restructured to reduce autonomy, decrease pay, and simplify the required skillset, it will typically see
Giving employees the autonomy to work in a way that suits them at work entails allowing them to choose their own speed, order, and degree of control over job responsibilities, as well as the flexibility to choose when and where they work.
What is autonomy to work?Giving employees the freedom to work how they choose is what is meant by workplace autonomy. Employees that have autonomy at work are free to choose how and when to complete their tasks. Depending on your business, workplace autonomy will take on a distinct appearance.
An organization's workforce will be more adaptable, more motivated, and more productive if it allows employees the freedom to select the best working arrangement for them and supports them with the appropriate guidelines, training, and resources.
Self-determination theory (SDT), which was created in the 1970s by psychologists Richard Ryan and Edward Deci, includes autonomous motivation.
In a nutshell, SDT is predicated on the notion that intrinsic motivation—as opposed to extrinsic rewards—is the greatest way for people to be driven to complete activities.
Learn more about autonomy to work, here
https://brainly.com/question/28521656
#SPJ1
a disadvantage of the corporate form of ownership is when profits are taxed at the corporate rate and at the individual rate and this is referred to as .
Double taxation, which occurs when profits are taxed at both the corporate and individual rates, is a drawback of the corporate form of ownership.
What is corporate form? By setting up a company in corporate form, a firm can operate independently of its owners. And in many states, a corporation with a corporate form of business may be run by one or more people.The double taxation of distribution revenues and dividends to shareholders is the main drawback of the corporation form. Limited liability, ease of transferability, the capacity to raise capital, limitless life, and other benefits are just a few.This article is for business owners who are attempting to decide on their corporate structure and whether it is advantageous for them to do so.To learn more about corporate form refer to:
https://brainly.com/question/1167298
#SPJ4
which of the following is an example of a long-run fixed cost? group of answer choices none of these are examples; there are no fixed costs in the long run mortgage payments. payments for production inputs. hourly wage costs.
Payments for production inputs is an example of a long-run fixed cost. Costs known as fixed costs do not change as sales or production volumes rise or fall.
This is because they aren't directly involved in producing a good or providing a service. Fixed costs long-run are expenses that don't change based on volume. In contrast to the quantity produced or sold by your company, fixed costs are typically determined by time. Salaries, utility costs, insurance, rent and lease costs, and loan repayments are a few examples of fixed costs. The phrase "fixed cost" describes a cost that does not change whether a company produces more or fewer things.
To learn more about fixed costs, click here.
https://brainly.com/question/17137250
#SPJ4
the amount of uncollectible accounts at the end of the year is estimated to be $31,500, using the aging of accounts receivable method. the balance in the allowance of doubtful accounts account is an $10,600 credit before adjustment. what is the adjusted balance of the allowance for doubtful accounts at the end of the year? multiple choice $42,100 $10,600 $31,500 $20,900
The adjusted balance of the allowance for doubtful accounts at the end of the year is $20,900.
What do accounts serve as a means for?The goal of accounting is to gather and present financial data regarding a company's operations, finances, and cash flows. After that, decisions are made based on this information regarding how to run the business, make investments in it, or give credit to it.
Why are accounting records crucial to a business?Accounting is essential to running a business because it makes it easier to keep track of income and expenses, ensures legal compliance, and gives investors, management, and the government access to quantitative financial data that can be used to make decisions.
To know more about Accounts visit:
https://brainly.com/question/22917325
#SPJ4
1. do you believe the rapid economic development of poorer countries helps or hurts the environment? why?
The environment is severely damaged by rapid economic development. Economic development is the production of new jobs and a rise in a country's economic productivity.
What is Economic development?Economic development is the process through which a country, region, local community, or an individual's economic well-being and quality of life are enhanced in accordance with specific aims and objectives, according to the economics study of the public sector. Although the concept has been around in the West for far longer, the phrase has become more popular in the 20th and 21st centuries. Other phrases frequently used while addressing economic growth include "Westernization," "industrialization," and "modernization." Economic development plans have historically prioritized industrialization and infrastructural development; however, since the 1960s, the emphasis has shifted to poverty alleviation. Economists are primarily concerned with the economy's growth, whereas community economic development experts are also interested in socioeconomic development.
To learn more about Economic development, visit:
https://brainly.com/question/1645709
#SPJ4
a marketer can stimulate problem recognition by group of answer choices creating a new ideal state or dissatisfaction with the actual state creating a new actual state or dissatisfaction with the ideal state increasing mao to process information about the new actual state decreasing mao so as to create dissatisfaction with the ideal state utilizing stimulation that will create clutter in the processing of information about the actual state
They can stimulate problem recognition earlier by eliciting dissatisfaction with the actual state or by. creating a new ideal state.
An ideal is a principle or value that one actively pursues as a goal, typically in the context of ethics, and how important you rank your ideals might tell you how committed you are to each one. Moral idealism is the term for the idealistic mindset. People who don't conform to our society's standards of beauty are examples of what you view as the best potential examples of whatever it is that you are idealizing. An alternative word for example is pattern More ideal's opposites. Encouragement of growth or a general cause of activity is stimulate. "The press stimulates political dialogue," for instance. Whatever its actual impact on the senses, a fascinating or enjoyable activity might be referred to as "stimulate".
Learn more about stimulate here :
https://brainly.com/question/6691706
#SPJ4
at the beginning of the year, bryers incorporated reports inventory of $6,700. during the year, the company purchases additional inventory for $21,700. at the end of the year, the cost of inventory remaining is $8,700. calculate cost of goods sold for the year.
At the beginning of the year, bryers incorporated reports inventory of $6,700. during the year, the company purchases additional inventory for $21,700. at the end of the year, the cost of inventory remaining is $8,700. calculate cost of goods sold for the year is $19,700
It is calculated as :
Cost of goods sold = Opening inventory + purchases - closing inventory
= $6700+ $21,700 - $8,700
=$19,700
Opening inventory is the inventory in the beginning of the year.
Closing inventory is known as inventory which remains unsold.
Cost of goods sold is the directly attributable cost of the creation of the product.
To know more about Cost of goods sold:
https://brainly.com/question/13499038
#SPJ4
what is collusion? a merger of two sellers agreements between sellers to increase their market power regulatory restrictions on the entry of new sellers into an industry cooperation between sellers to increase the level of competition
A non-competitive, secret, and even unlawful agreement between rivals to upset the market's equilibrium is known as collusion.
Collusion occurs when parties that would typically compete with one another decide to work together in order to obtain an unfair competitive advantage. The parties to a collusion agreement may decide to jointly adjust the supply of a good on the market or settle on a predetermined price point that enables the partners to maximize their profits at the expense of other rivals.
Across various market types, there are numerous ways that collusion might manifest itself. Organizations as a whole benefit unfairly in each situation. Price fixing is one of the most prevalent forms of collaboration. Prices may be artificially increased to support group interests at the expense of the customer or may be forcibly reduced to eliminate smaller competitors. In general, price fixing can limit or eliminate competition while also raising obstacles for potential entrants even further.
Learn more about collision at
https://brainly.com/question/4322828?referrer=searchResults
#SPJ4
if you open a pizza restaurant and assume that all potential customers have similar needs and wants, you are using a
Using a total market means opening a pizza restaurant and assuming that all potential customers will have similar needs and wants.
The complete revenue potential for a good or service, also known as the total market or total available market (TAM), would be realized if 100% market share were attained. It assists in determining the amount of time and money that an individual or firm should invest in a new business restaurant venture.
Since the estimates of the time and money needed enable startups and established businesses to prioritize particular products, customer total market segments, and business opportunities, the concept of total addressable market is crucial for both groups of companies. Company executives can use TAM to present a compelling value proposition restaurant where there are possible investors and purchasers of the business.
Learn more about total market here
https://brainly.com/question/14411378
#SPJ4
nicole's employer, poe corporation, provides her with an automobile allowance of $20,000 every other year. her marginal tax rate is 32 percent. answer the following questions relating to this fringe benefit. required: what is nicole's after-tax benefit if she receives the allowance this year? what is poe's after-tax cost of providing the auto allowance?
The Nicole's after-tax benefit if she receives the allowance this year $13,600.
What is tax?The term tax refers to the government charge the extra money for goods and services. The tax is also called as financial charge. The amount of tax are collect to government account as spent on public welfare. The public pay tax is compulsory. There are two types of tax, such as direct tax and indirect tax.
According to the tax are the based on the applicable to the company.
The tax rate applicable to the company is 32%.
After-tax cost of Poe Corporation = Allowance provided to Nicole*(1 – Tax)
= $20,000*(1 – 0.32)
= $13,600
As a result, the Nicole's after-tax benefit if she receives the allowance this year $13,600.
Learn more about on tax, here:
https://brainly.com/question/16423331
#SPJ1
andrew is choosing between four loans. loan p has a nominal rate of 10.393%, compounded daily. loan q has a nominal rate of 10.516%, compounded weekly. loan r has a nominal rate of 10.676%, compounded monthly. loan s has a nominal rate of 10.755%, compounded annually. which loan will give andrew the best effective interest rate?
Andrew will choose loan s - which have a nominal rate of 10.755%, compounded annually.
What is a loan?The term loan refers to a type of credit instrument in which an amount of money is lent to another party in exchange for future repayments of value or principal. Lenders often add interest or financing costs to the principal, which the borrower must repay in addition to the principal balance.A loan is a provision of money to another party in exchange for repayment of the loan amount plus interest.A lender considers a potential borrower's income, creditworthiness, and debt level before deciding to provide a loan.Loans may be secured by collateral, such as a mortgage, or unsecured, such as a credit card, gold, and property. A revolving loan or line can be issued, repaid, and reissued, while a term loan is a fixed interest rate loan with a fixed interest rate.loans are available as a one-time amount specified or as a permanent line of credit up to a specified limit. Loans come in many forms, such as: secured loans, unsecured loans, commercial loans, and personal loans.to know more about loan treatment refer to:
https://brainly.com/question/26011426
#SPJ4
suppose college graduates earn $25 an hour and high school graduates earn $15 an hour. suppose too that the marginal product of college graduates at johnson tools is five hammers per hour, while the marginal product of high school graduates is four hammers per hour (regardless of the number of each type of worker employed). what is the least- cost production method for producing 100 hammers in an eight-hour day? what if the marginal product of high school graduates was instead two hammers per hour? what is the critical difference in productivity (in percentage terms) at which the type of worker hired changes?
The marginal product of high school graduates was instead two hammers per hour is 100
For least-cost production, the ratio of the marginal product should be equal to its earnings.
Marginal ProductRatio =5/4
Earnings ratio = 25/15 = 5/3
The production of hammers will increasingly be done by high school pupils.
minimum 15x + 25 subject to
5x + 4y = 100
Marginal productivity or marginal product is the additional output, return, or profit produced per unit as a result of benefits from production inputs. A few examples of inputs are labor and raw materials. The total product value is divided by the difference in labor to determine the marginal product of labor.
Learn more about marginal product visit https://brainly.com/question/13623353
#SPJ4
10) suppose an investor deposits $5,000 in an interest-bearing account at her local bank. the account pays 2.5% (annual) with interest compounded monthly. if the investor plans on withdrawing the original principal plus accumulated interest at the end of ten years, what is the total amount that she should expect to receive assuming interest rates do not change?
The total amount that she should expect to receive assuming interest rates do not change is $6,418.20.
$5,000 is the first investment (PV). The interest rate is equal to 0.025/12, or 0.002083. Periods (n) = 10 * 12 = 120 months.
The following formula must be used to determine the future value (FV):
FV= PV*(1 + i)^n = 5,000*(1.002083^120) = $6,418.20.
An interest rate is an amount of interest that is payable each period stated as a percentage of the amount that was lent, deposited, or borrowed. The principal amount, interest rate, frequency of compounding, and duration of the loan, deposit, or borrowing determine the total amount of interest on a sum that was lent or borrowed.
To learn more about Interest rates visit: https://brainly.com/question/28236069
#SPJ4
true or false: the preemptive right allows larry to purchase any additional shares sold by the company. this right will protect larry from dilution in the value of the stocks he holds
The answer is true. The capacity of a company to generate and increase earnings determines the value of its shares. Expectations for earnings are based on economic value, sectoral, and company-specific variables.
Stock value is impacted by market capitalization size. A stock's worth is influenced by its market acceptance or perceived value. Market capitalization, sometimes known as market cap, refers to a company's value, or overall market value. The market capitalization of a corporation at any particular time can be calculated by dividing the stock price by the total number of outstanding shares. The capacity of a company to generate and increase earnings determines the value of its shares.
To learn more about shares, click here.
https://brainly.com/question/28392295
#SPJ4
true or false: mitigation funds are often allocated for public infrastructure and facilities improvements because they support the community's priority to protect its citizens.
The correct answer is true. All communities should have permanent mitigation committees, so public works professionals should have permanent seats.
For this reason, public works agencies are often the architects of disaster-resilient communities, and identifying mitigation opportunities is an ongoing process for public works professionals. When climate change mitigation funding becomes available, it is often allocated to projects that improve public infrastructure and facilities. These components are essential for protecting the health and safety of local residents.
When mitigation priorities are identified, they are likely to fall broadly under the public works area. There are countless opportunities for mitigation when looking at infrastructure improvements alone.
To know furthermore about Mitigation Funds at
https://brainly.com/question/512988
#SPJ4
typically, small retail properties are valued using the direct cap method. you are looking at a property with noi of $20,000. based on other transactions that have closed recently, you estimate the market cap rate is 5.5%. question: what is the estimated value of this property? please upload your work below, making sure to: (1) show the formula for the basic valuation model using the cap rate and (2) explain how you calculated value in this question
Based on recent closings, you estimate that the property is worth $277,777.78, which corresponds to a market cap rate of 5.5%.
Estimated value of property = NOI / Cap rate
= $15,000 / 5.4%
= $277,777.78
The capitalization rate, also referred to as the cap rate, is a term used in the world of commercial real estate to describe the expected rate of return on an investment property.
This metric is calculated using the expected net income from the property and is expressed as a percentage by dividing net operating capitalization rate income by the estimated property asset value. The potential return on the investor's real estate investment is calculated using this method.
While the cap rate can be helpful for comparing the relative values of cap rate comparable real estate investments on the market quickly, it shouldn't be relied upon as the only metric to gauge the strength of an investment.
Learn more about capitalization rate here
https://brainly.com/question/14103167
#SPJ4