Question regarding the liability insurance

Assignment Help Finance Basics
Reference no: EM13892700

Please help with the following problem:

You have the opportunity to buy a piece of land with your brother-in-law, Joseph Wheeler Dealer. The land can be purchased for $2,000,000 and Joseph is 100% positive that it can be sold for $2,900,000 in seven years. In fact, he will guarantee this sale price. As he says, "this is a no-brainer 50% return." What do you think the actual returns will be? The property is Miami-Dade County Florida and needs to be fenced. You might also need liability insurance. You can pay cash or finance the project. The cleanest assumption is to assume no debt. Do you have all the holding costs? Probably the best way to do this is with a short excel program.

Reference no: EM13892700

Questions Cloud

What is a literature review : What is a Literature Review?"A literature review discusses published information in a particular subject area, and sometimes information in a particular subject area within a certain time period.
Discuss different aspects of international business : 1. Read and study the required textbooks and come to classroom sessions ready to discuss different aspects of international business management topics.2. Observe and analyze Turkish management practices in different industrial settings.3. Interview a..
Assignment on your lot in life : Assignment on Your Lot in Life
Insurance expense had expired during the year. : Santo Company's adjusted trial balance on December 31, 2013, follows.
Question regarding the liability insurance : You have the opportunity to buy a piece of land with your brother-in-law, Joseph Wheeler Dealer. The land can be purchased for $2,000,000 and Joseph is 100% positive that it can be sold for $2,900,000 in seven years. In fact, he will guarantee thi..
Design evaluation methods for measuring process and outcomes : Design evaluation methods for measuring process and outcomes. Process refers to how the teaching plan went (i.e. on time, organization, environment, etc) and outcomes refers to whether your aggregate learned what you were teaching.
Discuss factors that govern selectivity of the reactions : Predict the products of the reaction shown and provide a mechanism that explains how it is formed - discuss the factors that govern the selectivity of the reactions.
How nature and nurture influence self-attribution : A discussion of how nature and nurture influence self-attribution and thereby affect cognitive development. (Benchmarks C 3.1: Critically analyze the influence of nature and nurture on cognitive development.)
Why do consumers seek to maximize utility : Why do consumers seek to maximize their utility? Is marginal utility more useful than total utility in the decision making of consumers? Why or why not? Is marginal utility per dollar spent a more accurate view than marginal or total utility? Why or ..

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the inventory turnover for each year

calculate the inventory turnover for each year. comment on your findings

  What is the significance of precedent to judicial

as a new manager in your department you are tasked with the job of providing employee training for members of your

  What company of the next couples of companies expected to be

An investor has invested all his money in shares of a gold mine. What reduce portfolio risk: diversify by buying shares in silver mining shares or car factories? Why? What company of the next couples of companies expected to be more exposed to macroe..

  What is the profitability index for an investment

What is the profitability index for an investment with the following cash flows given a 7 percent required return?

  What is their yield to call

Thatcher Corporation's bonds will mature in 12 years. The bonds have a face value of $1,000 and an 11.5% coupon rate, paid semiannually. The price of the bonds is $1,050. The bonds are callable in 5 years at a call price of $1,050. Round your answ..

  Estimate ace cos value per share at the end of year 2002

ace co. is to be taken over by beta ltd. at the end of year 2007. beta agrees to pay the shareholders of ace the book

  Calculate the observed risk premium in each year for the

suppose we have the following returns for large-company stocks and treasury bills over a six year

  Private-sector financial management techniques

Public school systems are not noted for providing student education at minimum cost.

  Estimate value of a new venture

A venture capitalist wants to estimate value of a new venture. The venture is not expected to produce net income or earnings until the end of year five when the net income is estimated at $1,600,000.

  Portfolio optimization 1 you have decided to invest in a

portfolio optimization 1. you have decided to invest in a portfolio that includes all companies in the dow jones

  Calculate the current value of the bond

Due to a number of lawsuits related to toxic wastes, major chemical producre has recently experienced a market revaluation. The company has a bond issue outstanding with fifteen years to maturity and a coupon rate of 8 percent,

  Does product mix impact decisions to accept new business

Does product mix impact decisions to accept new business?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd