293618 determine the present value An owner can lease her building for $100,000 per year for three years. The explicit cost of maintaining the building is $35,000, and the implicit cost is $50,000.
of a lease on the building, inventory, wages for two workers, electricity and insurance.
an estimated economic life of 10 years which is same as lease term.
You have worked as a real estate agent for 10 years and are earning about $100,000 per year with your current agency.
$29,494 $30,723 $31,494 $35,000 Burrell Corporation leases a building from Bennett Corporation for 10 years for $50,000 at the end of each year. The building has a fair value of $350,000 and an estimated useful life of 25 years.
Currently she is producing her own cookies, and she has revenues of $245,000 per year. Her costs are $40,000 for labor, $10,000 for rent, $35,000 for ingredients, and $5,000 for utilities.
"Guardian Insurance Company is willing to purchase the building site, construct a building and install fixtures to our specifications, and then lease the facility to us for 20 years for an annual lease payment of only $1 million.
Long Term On January 1, 2009, Blaugh Co. signed a long-term lease for an office building. The terms of the lease required Blaugh to pay $10,000 annually beginning on December 30, 2009, and continuing each year for 30 years.
"Guardian Insurance Company is willing to purchase the building site, construct a building and install fixtures to our specifications, and then lease the facility to us for 20 years for an annual lease payment of only $1 million."
A van equipped for such service can be leased at a cost of $5,000 for the summer from an owner taking a long vacation in the Bahamas. Additional projected costs are $2,500 for insurance, and $5 per service call for materials and supplies.