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In: Economics

The monthly repayment of a loan for an apartment for student rental is RM 900. An...

The monthly repayment of a loan for an apartment for student rental is RM 900. An additional cost of RM420 on tax and maintenance is also incurred on monthly basis. Given that the rental rate for a similar apartment is RM 500 per month, perform the following.

a) A simple economic analysis (without considering the interest rates) on the property investment.

[5 marks]

b) Then, identify the issues and alternatives available (at least three) based on the outcome of the simple economic analysis done in part (a).

[5 marks]

c) Finally, estimate the economic consequences of each alternatives from part (b) and support the analysis with cost values.

Solutions

Expert Solution

Rahul Sunny answered 1 year ago
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