User Account

All Pages

What is the principle of substitution

Assignment Help Accounting Basics
Reference no: EM131627586

Question: Imagine that you have been hired by a wealthy out-of-town investor to find him a residential income property investment with 5 to 10 units located within a 5-mile radius of the college or university you attend.

a. Search the defined area to find three suitable properties. You may want to use a real estate agent to isolate suitable properties more quickly.

b. Research the area to assess the demand for the properties you've isolated. Be sure to consider both the demographics and the psychographics of the area's population. Also assess mortgage market conditions as they would relate to financing 75% of each property's purchase price.

c. Assess the supply of competitive properties in the geographic area you've isolated. Identify the key competitive properties by using the principle of substitution.

d. Compare the competitive positions of the properties, and isolate the best property on the basis of the following features: (1) restrictions on use, (2) location, (3) site, (4) improvements, and (5) property management.

Reference no: EM131627586

Questions Cloud

Discuss about the income approach : Review the analysis and critically evaluate the realtor's work. Specifically review the cost approach, the comparative sales approach, and the income approach.
Which is the best e-book reader to acquire : which is the best e-book reader to acquire? What is the consistency in your analysis?
What are vabes in the decision making process : What are VABES in the decision making process. what are the six stag. What potential downside(s) do you see to this approach?
Compare actions taken against the initial plans : Review your financial and market performance during the second year. Compare actions taken against the initial plans .
What is the principle of substitution : Assess the supply of competitive properties in the geographic area you've isolated. Identify the key competitive properties.
Financial statements being the most important : A case can be made for each of the financial statements being the most important, though the ultimate answer depends on the needs of the user.
Estimate of the company cost of equity : The company's dividends have been growing at a rate of 5%. If the stock currently sells for $65, what is your best estimate of the company's cost of equity?
Discuss james and theodore brennan : which operated Brennan's Restaurant in New Orleans. This was a close corporation that is one whose stock is all owned
What is the bank cost of preferred stock : What is the bank's cost of preferred stock? (Show your work and round your answer to two decimal places).

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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