Please solve by hand for upvote Hailey has a small house, if she sells the house...

Please solve by hand for upvote

Hailey has a small house, if she sells the house now, she will probably get $ 225,000 for it. If she waits for 3 years from now, based on the trends in the real estate market she will probably receive more, may be $275,000. If she sells the house now, she can invest the money in a special saving account that pays 0.25% interest per month. Knowing that she is planning to relocate after 3 years and will hence need to cash on her investment. That is, she will need as much money as she can get. If she sells the house now, she will pay monthly rent of 1,100 for the next three years. If she keeps the house, she will need to pay $900 per month in interest and property taxes. What would be the more economical option for her?

Hint: Assume Hailey’s monthly value of time is 0.25%. Assume that now, time zero, Hailey does not need to pay any rent or mortgage. Payments will start by the end of the first month.

Expert Solution

jeff jeffy answered 1 year ago

please solve by hand

23. Susan sells a house built several years ago. The house sells for $304,016, and she...

23. Susan sells a house built several years ago. The house sells for $304,016, and she pays 5% of the sale price to her real estate agent for the commission fee. How much does this transaction add to GDP? Enter a number rounded to two decimal places. 24, The salary John’s grandfather earned in 1962 is a Group of answer choices inflation adjusted value. nominal value. real value. cost of living adjusted value.

Please write step by step in details thanks will upvote An entrepreneur opened a small hardware...

Please write step by step in details thanks will upvote An entrepreneur opened a small hardware store in a street mall. During the first few weeks, the business was slow with the store averaging only one customer arrived every 20 minutes. Assume that the random arrival of customers is Poisson distributed. (a) What is the probability that exactly 5 customers arrive during one-hour period? (b) If the average revenue from each customer is USD 12, what is the probability that...

Please solve by hand A luxury limo car company has a 2-year-old car with a current...

Please solve by hand A luxury limo car company has a 2-year-old car with a current book value of $98,000. The company’s uses Declining Balance method to calculate book depreciation with a rate of 30%. A] What was the original price of the car? B] What will be its book value 3 years from now? C] If the company decided to use the straight-line depreciation method form now on, knowing that the salvage value 5 years from now is zero....

Please solve by hand A company is investing in a new expansion project which will cost...

Please solve by hand A company is investing in a new expansion project which will cost $180,000 paid over 3 equal payments of $60,000. one payment is due now, one at the end of the first year and one at the end of the 2nd year. The project will start generating revenues of $44,000 per year at the end of the third year and up to and including the 10th year. Minimum Acceptable Rate of Return (MARR) = 8%. Please...

Please solve without the use of excel by discounting the cash flows "by-hand". Find the FV...

Please solve without the use of excel by discounting the cash flows "by-hand". Find the FV of $10,000 33 years in the future if the opportunity cost rate is 8% (use Excel formulas and basic PV/FV techniques). Find the PV of $1,000,000 to be delivered in 16 years if the opportunity cost rate is 7% (use Excel formulas and basic PV/FV techniques). Would you prefer the following (you can use just formulas for this problem): An ordinary annuity where you...

Let’s say that a seller has a house she wants to sell for $150,000. She asks...

Let’s say that a seller has a house she wants to sell for $150,000. She asks the real estate agent to list it for sale at $160,000, but tells the agent not to entertain any bid below $140,000. An interested buyer, who can afford a mortgage at current rates if the total price is below $145,000 (his limit), looks at the house and likes it enough to put in an offer of $138,000. This situation could be characterized as: Group...

Dexter Corporation produces and sells a single product, a wooden hand loom for weaving small items...

Dexter Corporation produces and sells a single product, a wooden hand loom for weaving small items such as scarves. Selected cost and operating data relating to the product for two years are given below: Selling price per unit P500 Direct materials P110 Direct labor P60 Variable manufacturing overheads P30 Fixed manufacturing overheads per year P1 200 000 Variable selling and administrative costs P40 Fixed selling and administrative costs P700 000 Units in beginning inventory 2 000 Units produced during the...

Dexter Corporation produces and sells a single product, a wooden hand loom for weaving small items...

Dexter Corporation produces and sells a single product, a wooden hand loom for weaving small items such as scarves. Selected cost and operating data relating to the product for two years are given below: Selling price per unit P500 Direct materials P110 Direct labor P60 Variable manufacturing overheads P30 Fixed manufacturing overheads per year P1 200 000 Variable selling and administrative costs P40 Fixed selling and administrative costs P700 000 Units in beginning inventory 2 000 Units produced during the...

Please solve by hand, not using excel. No discount rate provided. Suppose Blue Thumb Tools is...

Please solve by hand, not using excel. No discount rate provided. Suppose Blue Thumb Tools is considering the introduction of a new, heavier hammer to be used for driving spikes. The new hammer will cost $490,000. The cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the new hammer can be scrapped for $40,000. The new hammer will save the firm $146,000 per year in pretax operating costs, and it required an...

Question

Please solve by hand for upvote Hailey has a small house, if she sells the house...

Solutions

Expert Solution

Related Solutions

please solve by hand

23. Susan sells a house built several years ago. The house sells for $304,016, and she...

Please write step by step in details thanks will upvote An entrepreneur opened a small hardware...

Please solve by hand A luxury limo car company has a 2-year-old car with a current...

Please solve by hand A company is investing in a new expansion project which will cost...

Please solve without the use of excel by discounting the cash flows "by-hand". Find the FV...

Let’s say that a seller has a house she wants to sell for $150,000. She asks...

Dexter Corporation produces and sells a single product, a wooden hand loom for weaving small items...

Dexter Corporation produces and sells a single product, a wooden hand loom for weaving small items...

Please solve by hand, not using excel. No discount rate provided. Suppose Blue Thumb Tools is...