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Residential Construction Cost Estimate
We Answered:
Pancakes taste good! Just cover your floor in pancakes mam!! mmmmmmm! pancakes!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!… ;D(''') ( ^__^ ) (''')
Scott Said:
Help Me Solve an Accounting Word Problem (:?We Answered:
Answer:Annual cash inflow from rent $6,250,000.00
Less: Annual cash outflow ($4,750,000.00)
Net annual cash flow $1,500,000.00
At the present value table:
PV of an annuity at 8% for 35 periods = 11.65456822
PV of 1 at 8% for 35 periods = 0.067634543
Present value of annual cash flow ($1500000 * 11.65456822) $17,481,852.32
Add: Present value of salvage value ($8000000 * 0.067634543) $541,076.34
Total present value $18,022,928.67
Less: Estimated cost of construction $10,000,000.00
Net present value of investment $8,022,928.67
Chad Said:
Is this a good way to make the economy grow?We Answered:
It is definitely possible. Like the other person said, you need the demand for it. It also depends on a lot of factors like international economic policy, etc. It will probably help more with increasing infrastructure within the country which could foster future economic growth.