Business College

Professional Properties is considering remodeling the office building it leases to Heartland Insurance. The remodeling costs are estimated at $3.4 million. If the building is remodeled, Heartland Insurance has agreed to pay an additional $820,000 a year in rent for the next 5 years. The discount rate is 15 percent. What is the benefit of the remodeling project to Professional Properties? A) -$651,233 B) -$489,072 C) $5,214 D) $128,399 E) $311,417

Answers

Answer 1

Answer:

A) -$651,233

Explanation:

The computation of the benefit generated of the remodelling project is shown below:

If we considered the discounted rate i.e. 15% for 5 years of $820,000 so its present value would be $2,748,767 ($820,000 × 3.3521)

And, the predicted cost is $3,400,000

So here the cost is there instead of the benefit of

= $2,748,767 - $3,400,000

= -$651,233

Hence, the correct option is A

Related Questions

3. Colloids are used in food preparations like in baking
pastries and cakes.yes or no​

Answers

Yes they colloids are used in food perparations like pastries and cakes

PATTYCAKE PATTYCAKE PASTAMAN, GIMME PASTA POWER AS FAST AS U CAN

Answers

Answer:

Roll it, put in the oven for me and you

Explanation:

Other Questions
What was the 2 most important factor in industrialization? I need this asap thank you :) plzzzzz When the spring on a mousetrap car is fully unwound, the force acting on the car is _____.a.the combination of friction and the force of the lever arm pulling on the axleb.equal to the input force of the springc.only frictiond.gone What is the gcf of 99 and 54 PLEASE HELP ME ASAP The judicial branch of the US government has the power to1.create laws.2.interpret laws.3.command military maneuvers.4.appoint the heads of federal agencies. Plz help!!!!The "British Invasion" that began in 1964 refers to A. British influence on national politics in the United States. B. the British invasion of Western Europe during World War II. C. the British invasion of Southeast Asia after World War II. D. British influence on rock 'n' roll music in the United States. What law of motion is represented in the description:In order to get the child to go faster, her sister needed to push with a larger force.1st law of motion2nd law of motionOr3rd law of motion is the French and Indian War at event or law or act explain how it caused the Revolution to begin. I WILL GIVE BRAINLIEST During pregnancy, regular checkups are very important. This consistent care can help keep you andyour baby healthy, spot problems if they occur, and prevent problems during delivery. Typically,routine checkups occur: Once each month for weeks four through 28 Twice a month for weeks 28 through 36Weekly for weeks 36 to birth If the Washington Monument is 3025 square feet and an average gallon of paint covers 400 square feet, how much paint would it take to cover it all up? PLEASE HELP WILL GIVE BRAINLIEST. Im also wondering how I would go about solving this? I have a lot more. PLEASE HELPStudy the map and map key. Use the information in the map to answer the questions.A map titled Egyptian Trade Routes About 1450 B C shows the Egyptian Empire extending from Nubia in central Africa through upper and lower Egypt, with the following cities located on the Nile River: Nubata in Nubia, Aswan and Thebes in Upper Egypt, and Giza and Sais in Lower Egypt. The empire also extends along the eastern shores of the Mediterranean to Syria and the city of Kadesh in the north. A network of Egyptian trade routes, shown as solid black lines, connects the empire with other regions, including the city of Knossos on the island of Crete, the city of Assur on the Tigris River and the Sumer region. Trade routes also lead into Central Africa and Western Africa.What island city did Egyptians travel to in the Mediterranean Sea? What is the slope of the line shown below? Juan's cell phone company charges $35 a month for phone service plus$0.50 for each text message. How many text messages does Juan send in amonth if his bill was $52? Describe the setting of chapter 1. Where is Captain Walton? What does he describe seeing? (Frankenstein) Which of the following is a description of trait of a country with a highcarrying capacity?O A. Food grown on land near homesB. Spending hours per day collecting waterC. Easy access to safe drinking waterO D. Very little access to refrigerationSOMEONE PLEASE HELP ME IM STUCK ON THIS PLEASEEEE Explic modul n care s-au format urmtoarele cuvinte din : ntotdeauna, venicie. Why is 25 a composite number? (1 point)It is odd.OIt has more than two factors.O All of its factors are prime numbers.It is not divisible by any number except one and itself. THE TRUE STATEMENTS ARE________ , _________ and _________ .please help I really need help i am just going to give points away pls give me brainlyest What is the value of 6x2 when x = 1.5?Round to the tenths placepls help