Question

Deborah bought an acre of land for fifty thousand dollars. The value of the land appreciated...

Deborah bought an acre of land for fifty thousand dollars.

The value of the land appreciated by five percent each year.

Calculate the value of the land after a twenty-five year period.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose land is currently selling for $2,500 an acre and that you expect land prices to...
Suppose land is currently selling for $2,500 an acre and that you expect land prices to go up at an annual rate of 6 percent over the next 10 years. a. Ignoring the annual net cash flow generated by this land for the moment, can you justify purchasing this land at this price if your required rate of return is 8 percent and capital gains are taxed at a 20 percent rate? Assume you plan to sell this land 10...
Mr. Agirich has the opportunity to purchase some farm land at $3,000/acre. He expects that real...
Mr. Agirich has the opportunity to purchase some farm land at $3,000/acre. He expects that real land prices will increase at 5% per year and inflation will be 2%. His pretax risk adjusted discount rate is 14%. Assume that the land will be sold in 10 years and the marginal tax rate is 23%. The effective interest rate on land loans is 6%. a. Calculate the Present Value of the after-tax terminal value. b. What is the maximum bid price...
Thomas invested five thousand dollars at four percent simple interest per annum. How long (in days)...
Thomas invested five thousand dollars at four percent simple interest per annum. How long (in days) will it be before his investment earns one hundred and eighty dollars. Use the Banker's Rule for the number of days in a year.
Bridge City Consulting bought a building and the land on which it is located for $120,000...
Bridge City Consulting bought a building and the land on which it is located for $120,000 cash. The land is estimated to represent 70 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use. 3. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $13,000 estimated residual value. (Do not round intermediate calculations.)       4. What should be the book value...
Bridge City Consulting bought a building and the land on which it is located for $135,000...
Bridge City Consulting bought a building and the land on which it is located for $135,000 cash. The land is estimated to represent 50 percent of the purchase price. The company paid $6,000 for building renovations before it was ready for use. Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $4,000 estimated residual value. (Do not round intermediate calculations.) What should be the book value of (a) the...
Company MNO generates between 10800 and 14500 million dollars revenue per year. Suppose that the company's...
Company MNO generates between 10800 and 14500 million dollars revenue per year. Suppose that the company's revenue stays within this range. Use an interest rate of 9% per year compounded continuously. Fill in the blanks in the paragraph below, rounding your answers to the nearest tenth. The present value of MNO's revenue over a five year period is between ________________ and ________________ million dollars. Over a twenty-five year period, the present value falls between __________________ and ________________ million dollars.
1.. Kishan exchanged office building for land. Building orginal cost 45000 and adjusted value 20000. Land...
1.. Kishan exchanged office building for land. Building orginal cost 45000 and adjusted value 20000. Land had fair market value of 40000 and also Kishan gave 4000 in transaction. What is the basis of land after exchange? 2. Asha purchased super computer for 3,000,000 (5 Year property) on sept 27. with MACRS Section 1, what Asha's maximum cost recovery for this year? 3. This year Mike sold business equipment for 100,000. Mike bought that twp years ago for 90000 and...
Your friends and you decide to purchase a large tract of forest land in northern Minnesota...
Your friends and you decide to purchase a large tract of forest land in northern Minnesota with the intent of generating income from timber and leasing the hunting rights. Your estimated costs and returns are as follows: • $1400/acre purchase price of land, paid back in equal yearly installments over 15 years @ 7% annual interest. • $200/acre site preparation costs incurred immediately. • $250/acre tree planting costs incurred 1 year after purchase. • $100/acre forest management costs incurred 3,...
Your friends and you decide to purchase a large tract of forest land in northern Minnesota...
Your friends and you decide to purchase a large tract of forest land in northern Minnesota with the intent of generating income from timber and leasing the hunting rights. Your estimated costs and returns are as follows: • $1400/acre purchase price of land, paid back in equal yearly installments over 15 years @ 7% annual interest. • $200/acre site preparation costs incurred immediately. • $250/acre tree planting costs incurred 1 year after purchase. • $100/acre forest management costs incurred 3,...
Calculating Future Values. Your coin collection contains fifty 1952 silver dollars. If your grandparents purchased them...
Calculating Future Values. Your coin collection contains fifty 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2067, assuming they appreciate at an annual rate of 4.3 percent? Calculating Interest Rates and Future Values. In 1895, the first U.S. Open Golf Championship was held. The winner’s prize money was $150. In 2016, the winner’s check was $1,800,000. What was the percentage increase...