Given the following information regarding an income producing property, determine the net present value using unlevered cash flows at a discount rate of 10%. Expected Holding Period: 5 years; 1st year Expected NOI: $91,200; 2nd year Expected NOI: $93,873; 3rd year Expected NOI: $96,626; 4th year Expected NOI: $99,462; 5th year Expected NOI: $102,383; 6th Expected NOI: 105,634; Debt Service in each of the next five years: $60,544; Current Market Value: $897,000; Required equity investment: $223,350; Apply a going-out capitalization rate of 8.75% to determine the Gross Sales Price at end of year 5 has Closing Expenses of $12,000 and Disposition Fee (Brokerage Commission) of 3% of Gross Sales Price.; Remaining Mortgage Balance at end of year 5: $631,126. Show your steps used in Excel.
Answers
To calculate the net present value, calculate unlevered cash flows for each year, determine the gross sales price at the end of year 5, calculate the terminal value, and discount all cash flows. The net present value is $898,885.
To calculate the net present value (NPV) of this income producing property, we will need to do the following:
Calculate the unlevered cash flows for each year, which are the net operating income (NOI) minus the debt service.
Determine the gross sales price at the end of year 5 using the going-out capitalization rate and subtract the closing expenses and disposition fee.
Calculate the terminal value, which is the gross sales price plus the remaining mortgage balance at the end of year 5.
Calculate the present value of each year's cash flow and the terminal value using a discount rate of 10%.
Sum up the present values of all cash flows to get the net present value.
Calculate the gross sales price at the end of year 5 by multiplying the year 5 NOI ($102,383) by the going-out capitalization rate (8.75%) and dividing by the discount rate (10% - 8.75% = 1.25%):
Gross Sales Price = Year 5 NOI * Going-Out Cap Rate / Discount Rate
= $102,383 * 8.75% / 1.25%
= $716,435
Subtract the closing expenses and disposition fee to get the net proceeds from the sale
Net Proceeds from Sale = Gross Sales Price - Closing Expenses - Disposition Fee
= $716,435 - $12,000 - 3% * $716,435
= $681,341
Calculate the terminal value by adding the remaining mortgage balance at the end of year 5 to the net proceeds from the sale:
Terminal Value = Remaining Mortgage Balance + Net Proceeds from Sale
= $631,126 + $681,341
= $1,312,467
Sum up the present values of all cash flows to get the net present value:
Net Present Value = Sum of Discounted Unlevered Cash Flows + Present Value of Terminal Value
= $172,157 + $726,728
= $898,885
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Related Questions
Freda is a cash basis taxpayer. In 2019, she negotiated her salary for 2020. Her employer offered to pay her $21,000 per month in 2020 for a total of $252,000. Freda countered that she would accept $10,000 each month for the 12 months in 2020 and the remaining $132,000 in January 2021. The employer accepted Freda’s terms for 2020 and 2021. a. Did Freda actually or constructively receive $252,000 in 2020? b. What could explain Freda’s willingness to spread her salary over a longer period of time? c. In December 2020, after Freda had earned the right to collect the $132,000 in 2020, the employer offered $133,000 to Freda at that time, rather than $132,00
Answers
Answer:
A. N0
B. She may likely bargain for the payments that was reason been that she expects the payments to be in a lower marginal tax bracket in 2021
C. NO
Explanation:
a. No .Based on the information given the amount of $252,000 was NOT constructively received in the year 2020 reason been that She has the amount of $132,000 which is a deferred income amount that
is not constructively received in 2019 and the reason why the amount was not received was because been under the main contract terms she did not have the sole right to receive the income in the year 2020.
b. Freda's willingness to spread her salary over a longer period of time may be due to the fact that She may likely bargain for the payments reason been that she expects the payments to be in a lower marginal tax bracket in the year 2021
c. Based on the information given she is NOT in constructive receipt of the income in the year 2020.
PLEASE HELP IT DUE TODAY
What are stakeholders from Monopolistic competition, oligopoly, and monopoly?
Answers
Explanation:
Monopolistic competition
Monopolistic competition, many seller that differentiated products - products that differ slightly but sever similar purpose. By making consumer aware of product difference, seller exert some control over price.
Oligopoly
In an oligopoly, a few sellers supply sizable portion of products in the market. They exert some control over price, but because their products are similar, when one company lowers prices, the others follow .
Monopoly
In a monopoly, there is only one seller in the market. The market could be a geographical area, such as a city or a regional area, and does not necessarily have to be añ entire country. The single seller is able to control prices
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Refrigerant ____ is to reprocess refrigerant to new product specifications as set by Environmental Protection Agency (E.P.A.).
Answers
Answer:
Reclaiming
Explanation:
From the question we were told tha refrigerant "Reclaiming" is to reprocess refrigerant to new product specifications as set by Environmental Protection Agency (E.P.A.).
Reclaiming is the process of reforming, or to turn wastes refuse through industrial process or natural process into a useful products or substance.its a means in which usable material is been generated from. by products which is achieved through following the rules set by
Environmental Protection Agency (E.P.A.). for safety of all.
beau, a fashion design company, organizes an online contest. participants are asked to design women's apparel to be posted on a social media website where its members can vote and provide feedback. based on those votes, beau will announce the winner and offer that individual a job at its firm. in this scenario, beau is involved in . group of answer choices brandjacking recruitment blogging crowdsourcing
Answers
In this scenario, Beau is involved in crowdsourcing. Thus, option D is correct.
Crowdsourcing is the process of gathering work, knowledge, or views from a sizable number of individuals who contribute their information online, on social media, or through mobile apps.
Some participants in crowdsourcing carry out modest chores freely, while others occasionally work as paid freelancers. For instance, traffic applications like Waze encourage users to self-report accidents and other occurrences on the road so that users may get real-time, updated information.
Crowdsourcing enables businesses to access a wide range of talents and knowledge without paying the typical overhead expenditures of in-house staff by allowing corporations to farm out work to people anywhere in the nation or the world.
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What is the hazard? Chris works for a city public works department. One hot afternoon the temperature outside reached 92 degrees. While Chris was shoveling dirt in a vacant lot, he started to feel dizzy and disoriented. He fainted due to the heat.
Answers
Answer: dehydration
Explanation:
Answer:
dehydration and heat exhaustion.
Explanation:
I hope this helps! :)
What is phishing and how does it help people make money?
Helpp
Answers
Answer: well phishing is an incurrence fraud
Explanation:
Answer:
Phishing is when someone (or a group) calls/texts/emails/etc people pretending to be someone else (the police or the irs) and demanding for money by scaring the person. It helps people make money because some of the victims that they demand money from will fall victim and give them the money
Explanation:
this was written in my own words :)
Privately owned media companies in the united states earn most of their revenue from:.
Answers
Answer:
advertising
Explanation: Mark me brainliest!!
Media companies are the group that enabled broadcasting for knowledge, entertainment, and another purpose. The major source of revenue for media companies is advertisements.
What is revenue?The revenue can be described as the actual amount earned by a business by performing its regular business operations. It can be in the form of fixed income or fluctuating income.
The media companies invested in the gathering of the information and the processing for the development of the broadcasting content.
The major revenue source gained by the private media companies was developed from advertising.
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The impact of Furman v. Georgia (1972) was that states had to
promise to use the death penalty only with approval from the Supreme Court.
throw out the old Miranda warning and write a new one.
agree to throw out all state laws regarding crime and impose national standards.
create clear standards to be applied fairly before imposing the death penalty.
Answers
Answer: D.create clear standards to be applied fairly before imposing the death penalty.
Explanation: The answer it's right there
The impact of Furman v. Georgia (1972) was that states had to
create clear standards to be applied fairly before imposing the death penalty.The Furman v. Georgia caseThis was a case that had to do with the cruel and the unusual way that people faced in the death penalty.
The case ruled that the death penalty was unconstitutional if it was applied in a discriminatory way.
It ruled that the eight amendment was being violated if used in this way.
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what challenges to your monthly budget do you except if you have a spouse and children to your life?
Answers
Answer:
If you have a spouse and children, there can be several challenges to your monthly budget, including:
Increased expenses: The addition of more people in your family means an increase in expenses, including food, clothing, housing, and healthcare.
Childcare costs: If both you and your spouse work, you may need to pay for childcare, which can be a significant expense.
Education expenses: As your children grow up, they may need to attend school or college, which can be expensive.
Unforeseen expenses: With more people in your family, there may be more unforeseen expenses, such as medical emergencies or car repairs.
Saving for the future: When you have a family, it is important to save for the future, including retirement and your children's education.
To manage these challenges, it is important to create a realistic monthly budget that takes into account all the expenses associated with having a family. You may also need to make some lifestyle adjustments, such as eating out less or finding ways to reduce your energy bills, to help you stay within your budget.
Explanation:
An organization's _____ can pay attention to, measure, and control a number of activities, processes,or outcomes in order to foster a certain culture.missionleadersstrategystatements
Answers
An organization's leaders can pay attention to, measure, and control a number of activities, processes, or outcomes in order to foster a certain culture, option C.
A firm, institution, group, or other type of body made up of one or more individuals and serving a specific function is referred to as an organisation or organisation.
A wide range of legal entities exist, including companies, governments, non-governmental organisations, political organisations, international organisations, armed forces, charities, for-profit businesses, partnerships, cooperatives, and educational institutions, among others.
A hybrid organisation is one that performs public functions and creates commercial market activity concurrently in the public and private sectors.
A volunteer-run organisation is referred to as a voluntary association. Depending on the jurisdiction, these organisations, which may include informal clubs or coordinating bodies with a purpose in mind that they might express in the form of a manifesto, mission statement,
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Complete question:
An organization's _____ can pay attention to, measure, and control a number of activities, processes,or outcomes in order to foster a certain culture.
statements
mission
leaders
strategy
Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies.
Answers
Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and concentrated targeting strategies.
There are four frequently used targeting strategies including the micromarketing, undifferentiated, differentiated, and concentrated targeting strategies. Let's discuss them briefly:
Micromarketing: This targeting strategy focuses on specific customer groups or individuals. It is also known as niche marketing because it concentrates on meeting the needs of a specific market segment. For example, a store that specializes in selling designer shoes for women who wear a size 12 would be using a micromarketing strategy. Undifferentiated: This strategy focuses on the mass market. This means that the company offers a product or service that can appeal to any consumer in the target market. It does not differentiate between any segments in the market and the product is produced and marketed for everyone in the market.
Differentiated: This targeting strategy focuses on more than one market segment. For example, Coca-Cola produces diet soda, regular soda, and caffeine-free soda. Each of these products is targeted towards a different segment in the market.
Concentrated: This strategy focuses on a specific market segment. The product or service is developed specifically for that segment, and the marketing message is tailored to them.
For example, a company that makes high-end sports cars will only target individuals who can afford to buy such cars.
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solve please. i have permission
(1 eBook Problem Walk-Through Project L requires an initial outlay at t= 0 of $66,000, its expected cash inflows are $13,000 per year for 10 years, and its WACC is 13%. What is the project's payback?
Answers
the project's payback period is 4.08 years, meaning it takes approximately 4 years and 1 month to recover the initial investment of $66,000 through the expected cash inflows of $13,000 per year for 10 years.
To calculate the project's payback period, we need to determine the time it takes for the cumulative cash inflows to equal or exceed the initial outlay.
Given:
Initial outlay (t=0) = $66,000
Expected cash inflows = $13,000 per year for 10 years
WACC = 13%
To find the payback period, we will calculate the cumulative cash inflows for each year until it reaches or exceeds the initial outlay.
Year 1: $13,000
Year 2: $13,000 + $13,000 = $26,000
Year 3: $13,000 + $13,000 + $13,000 = $39,000
Year 4: $13,000 + $13,000 + $13,000 + $13,000 = $52,000
Year 5: $13,000 + $13,000 + $13,000 + $13,000 + $13,000 = $65,000
By the end of Year 5, the cumulative cash inflows equal $65,000, which is less than the initial outlay of $66,000.
To find the payback period more precisely, we can calculate the fraction of the final year's cash inflow needed to reach the initial outlay:
Fraction = (Initial Outlay - Cumulative Cash Inflows at Year 4) / Cash Inflow in Year 5
Fraction = ($66,000 - $52,000) / $13,000 = 14,000 / 13,000 ≈ 1.08
Adding this fraction to the end of Year 4, we find that the payback period is approximately 4.08 years.
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When performing CPR on a child, you should compress the chest:
a. 80 to 100 times per minute.
b. with one or two hands.
c. to a depth of 1 to 2 inches.
d. until a radial pulse is felt.
Answers
When performing CPR on a child, you should compress the chest with one or two hands. (B)
In general, the bones of a child are not as delicate as adults', and using two hands enables you to apply the deeper compressions necessary when working on an adult. CPR won't work if you don't exert a sufficient amount of pressure to the chest. When dealing with very young children, often between the ages of one and eight years old, just use one hand. If you find that you are becoming exhausted while performing the compressions, you should switch to using both hands so that you can continue to achieve the target depth of at least two inches. Place two fingers directly in the middle of the child's chest, right below the nipple line, for infants and children younger than one year old.
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which of the following products would most likely be manufactured using a job order costing system? a.recliner b.graduation invitation c.highlighter pen
Answers
A job order costing system would likely be used to produce the graduation invitations.
What is job order costing system?Using the job order method of pricing, the cost of producing each product is determined. This method of costing is frequently employed when a manufacturer needs to calculate the cost of carrying out a certain job while manufacturing a number of unique things.
Enterprises in the white-collar sector of the economy, like law companies, accounting firms, and private investment firms, can manage particular client accounts using job order costing. For example, accounting firms might see each client as a different work.
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Which statement is accurate regarding the importance of Maslow's need hierarchy for managers? a) It postulates that employees have three basic sets of needs that can operate simultaneously. b) It sensitizes managers to the importance of personal growth. c) It is a complex and altogether accurate theory of employee motivation. d) It states that once a need is satisfied, it acts as a powerful motivator. e) It states that employees are motivated to satisfy the higher needs before they try to satisfy the lower needs.
Answers
The accurate statement regarding the importance of Maslow's need hierarchy for managers is that it sensitizes managers to the importance of personal growth. Option B is answer.
Maslow's need hierarchy, also known as Maslow's hierarchy of needs, is a theory that suggests individuals have different levels of needs that motivate their behavior. The hierarchy consists of five levels: physiological needs, safety needs, belongingness and love needs, esteem needs, and self-actualization needs. According to Maslow, individuals strive to satisfy these needs in a hierarchical order, with the higher needs becoming relevant only after the lower needs are fulfilled.
Option B (It sensitizes managers to the importance of personal growth) is the correct answer. Maslow's theory emphasizes that individuals have a need for personal growth and self-actualization, which goes beyond basic material and social needs. Managers who understand this aspect can create work environments that support employees' personal growth, leading to increased job satisfaction and motivation. It highlights the importance of providing opportunities for learning, development, and self-fulfillment within the workplace.
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what is a share of ownership in a company?
Answers
Answer:
A share is a single unit of ownership in a company or financial asset. It is essentially an exchangeable piece of value of a company which can fluctuate up or down, depending on several different market factors. Companies divide capital into shares as a means of raising capital. Shares are also known as stocks.
Explanation:
Describe public corporation and it's characteristics
Answers
A public corporation is a type of business organization that is owned by shareholders and publicly traded on stock exchanges. This means that anyone can purchase shares of the company and become a part-owner.
What are the Characteristics of a Public Corporation?Some of the key characteristics of a public corporation include:
Limited liability: Shareholders are typically only responsible for the amount of money they invested in the company and are not personally liable for its debts or obligations.Ownership: The company is owned by its shareholders, who have a right to vote on certain corporate matters such as the election of directors and approval of major transactions.Stock exchange listing: Public corporations are listed on stock exchanges, which allows for easy buying and selling of shares and provides a market for determining the value of the company's stock.Regulation: Public corporations are subject to extensive regulation by government agencies, including securities and exchange commissions, which protect investors and promote transparency.Management structure: Public corporations are typically run by a board of directors and senior management, who are responsible for making decisions that benefit both the company and its shareholders.Public disclosure: Public corporations are required to make regular financial disclosures, including financial statements and other important information, to ensure that investors have access to accurate and timely information about the company's performance.Learn more about public corporation here: https://brainly.com/question/28282776
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.Others at work see me as assertive. need answers for application
Answers
Answer:
yes
Explanation:
It is an ability to defend your rights without hurting those of others. An assertive person, therefore, is the one who can express his emotions, needs, and opinions to others without being forceful in any way
State and explain in detail the emerging issues in Management Accounting
Answers
Emerging issues in management accounting refer to the current and evolving trends, challenges, and areas of focus within the field of management accounting.
These issues often arise due to changes in business environments, advancements in technology, evolving regulations, and the need to provide relevant and timely information for effective decision-making. Here are some key emerging issues in management accounting:
Sustainability and Environmental Accounting: With the increasing emphasis on sustainability and environmental responsibility, organizations are incorporating environmental accounting practices into their management accounting systems. This includes measuring and reporting environmental costs, evaluating the environmental impact of business operations, and integrating sustainability goals into decision-making processes.
Big Data and Analytics: The availability of large volumes of data and advancements in data analytics have revolutionized management accounting. Organizations are leveraging big data to improve forecasting, identify trends and patterns, perform predictive analysis, and support strategic decision-making. Data analytics tools help extract actionable insights from complex datasets and enable better financial planning, risk assessment, and performance evaluation.
Integrated Reporting: Integrated reporting aims to provide a comprehensive and holistic view of an organization's performance by combining financial, environmental, social, and governance information in a single report. This emerging approach promotes transparency, accountability, and a broader understanding of an organization's value creation beyond financial metrics.
Risk Management: Risk management is becoming increasingly critical for organizations to navigate uncertainties and safeguard their financial and operational objectives. Management accountants are playing a crucial role in identifying and assessing risks, developing risk management strategies, and implementing effective control systems. Risk-focused management accounting techniques such as enterprise risk management (ERM) and risk-based performance management are gaining prominence.
Digital Transformation and Automation: The digital transformation of business processes is reshaping management accounting practices. Automation tools, artificial intelligence, and robotic process automation are streamlining routine tasks, improving data accuracy, and enabling real-time reporting. Management accountants need to adapt to digital technologies, embrace data-driven decision-making, and develop skills in data management, data analysis, and technology integration.
Changing Role of Management Accountants: The role of management accountants is evolving from traditional financial reporting and cost analysis to strategic business partners. Management accountants are increasingly involved in strategic planning, performance management, risk assessment, and providing insights for decision-making. They need to possess strong analytical skills, business acumen, and communication abilities to effectively collaborate with different stakeholders and contribute to organizational success.
Ethical Considerations: Ethical issues in management accounting, such as ethical decision-making, conflicts of interest, and professional integrity, continue to be important. Organizations and management accountants are focusing on ethical guidelines, and professional codes of conduct, and promoting a culture of ethics to ensure ethical practices in financial reporting, budgeting, and decision-making processes.
It is important for management accountants and organizations to stay updated on these emerging issues and adapt their practices accordingly. Embracing these trends can help organizations gain a competitive advantage, improve decision-making processes, and drive sustainable growth in a rapidly changing business landscape.
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Can Someone Please help me with this ASAP
From the following list of terms, select the one that best fits each definition below. Write your selected word on the lines provided.
Word bank:
feedback
empathy
active listening
credibility
consistency
packaging options
image
interpersonal
initiative
electronic
Questions:
1. One method of recording client requests. ____________________
2. A skill when using appropriate body language. ____________________
3. Good customer service builds the reputation, trust ____________________ of a business.
4. A communication skill needed to understand customers. ____________________
5. An example of choices that customers have. ____________________
6. Personal hygiene and grooming contribute to one’s ____________________.
7. Important in understanding the needs and point of view of a client. _____________________
8. Means reliability and constancy. ______________________
9. Employers appreciate workers who use their own ____________________ when making decisions.
10. When customers provide comments or reactions to customer service. ___________________
Answers
______________
1.One method of recording client requests. electronic. 2. A skill when using appropriate body language. _active listening 3. Good customer service builds the reputation, trust credibility of a business.__________. 4. A communication skill needed to understand customers. interpersonal 5. An example of choices that customers have. _packaging options. 6. Personal hygiene and grooming contribute to one’s_image. 7. Important in understanding the needs and point of view of a client. empathy. 8. Means reliability and constancy. consistency. 9. Employers appreciate workers who use their own ___initiative when making decisions. 10. When customers provide comments or reactions to customer service. feedback
Which of the following is an example of a source of external information?
government report
purchase records
loyalty cards
service records
Answers
Answer:
Government Reports are a source of external information
PLS HELP
When price increases, quantity supplied
stays the same
decreases
increases
becomes zero
Answers
Answer:
the quantity supplies increases, just like if the price decreases the supply decreases.
A seller put her house and lot on the market for $200,000. After receiving several offers within $5,000 of her asking price, the seller entered into a contract to sell the house and lot to a buyer for $200,000. The contract provided that the buyer put up $4,000 in earnest money, which the seller could treat as liquidated damages unless: The seller fails to tender marketable title to the buyer by the agreed-upon closing date, the seller commits a material breach of this contract, or the buyer dies prior to the closing date, in which case the earnest money shall be reimbursed to the buyer's estate. The contract was signed on July 24, and the closing date was set for September 12. On August 5, the buyer was seriously injured in an accident. On September 10, the buyer was released from the hospital in a wheelchair. He determined that a ranch-style house would make his life much more bearable, but the seller's home was two stories. The buyer asked the seller to cancel the contract and to refund the $4,000 earnest money. The seller refused. The buyer did not appear on the closing date. On September 16, the seller contracted to sell the home to a purchaser for $198,000. The closing occurred as planned on October 20. The buyer files suit against the seller, praying for a refund of the $4,000 earnest money. How much is the buyer likely to recover
Answers
Answer:
$0
Explanation:
Both the buyer and seller agreed upon the amount that would be deposited as earnest money and what would happen to it in case the sale wasn't closed. The amount is not unreasonably large compared to the purchase price (2% only) and that represents a fair amount for the damages suffered by the seller. The seller is not responsible for the things that happened to the buyer.
how many months weeks days are in 157 days?
Answers
List and explain four ways an entrepreneur can help his or her local
community
Answers
Answer: 1) Sponsor non-profit organizations in the community. ...
2) Incorporate volunteering in the company mission. ...
3) Design a business model that gives back. ...
4) Contribute to the local economy. ...
5) Promote local businesses.
Explanation:
I hope this helps!
Your market value is determined by what you bring to the job.
True
False
Answers
Subject is* human resources management**
The increase in a natural population as progeny grow and new members arrive & the action or fact of carefully choosing someone or something as being best or most suitable. Report the recruitment and s
Answers
Recruitment is the process of carefully selecting the best and most suitable individuals from the natural population, including progeny growth and new members, to fill job vacancies within an organization. It involves attracting, screening, and selecting qualified candidates through various methods to ensure the continuous growth and replenishment of the workforce.
Recruitment is the process of attracting, screening, and selecting qualified individuals to fill job vacancies within an organization. It plays a crucial role in human resources management as it ensures the continuous growth and replenishment of the workforce.
The increase in the natural population, as progeny grow and new members arrive, contributes to the pool of potential candidates available for recruitment.
To effectively manage recruitment, organizations typically follow a structured approach. This involves analyzing the job requirements, developing job descriptions and specifications, and determining the most appropriate recruitment methods.
These methods may include posting job advertisements, utilizing online job boards, engaging with recruitment agencies, and leveraging social media platforms to reach a wider audience.
Once applications are received, the screening process begins, where resumes and application materials are reviewed to identify candidates who meet the required qualifications.
Shortlisted candidates are then invited for interviews, assessments, and other selection procedures to evaluate their suitability for the position.
The recruitment process is a continuous cycle, aiming to identify and attract the best and most suitable individuals to join an organization.
By carefully selecting candidates who align with the organization's values, culture, and job requirements, effective recruitment ensures the acquisition of talented individuals who can contribute to the organization's success and growth.
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Complete question:
What is recruitment in human resources management, and how does it involve carefully selecting the best and most suitable individuals from the natural population, including progeny growth and new members, to fill job vacancies within an organization?
why should we respect the life and culture of all people living in the country ?
Answers
Explanation:
Culture forms our identities and attitudes, and intercultural communication allows us to embrace and sometimes even integrate and learn the language with many other communities to some degree. In modern environment, cultural diversity is becoming extremely significant. We should respect all culture and community.
if a nonbinding price floor is imposed on a market, then the
Answers
if a nonbinding price floor is imposed on a market, then the quantity sold will stay the same.
Here are the options of this question:
then the a quantity sold in the market will stay the samequantity sold in the market will decreaseprice in the market will increaseprice in the market will decreaseA price floor is when the minimum price for a good or service is set by the government or an agency of the government. Price floor is usually set for agricultural products. This is done to encourage suppliers of goods and services.
Types of price floor
Binding price floor: this is the price floor that is set above equilibrium price. When the price floor is binding, the supply of a good would increase. Non-binding price floor: this is the price floor that is set below equilibrium price. When the price floor in nonbinding, there would be no change in supply.An example: If the price of a good is $10. The equilibrium price is $12. If the government sets the price as $14. This is a binding price floor. If the price is set below $12, it is a nonbinding price floor.
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Which of these factors is an advantage to using cash?
Answers
Answer:
B no fees or charges
Explanation:
Your welcome
Answer:
B.no fees or changes this is the right one