Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

The maintenance expenses on a rental house you own average $200 a month. The hou

ID: 2754382 • Letter: T

Question

The maintenance expenses on a rental house you own average $200 a month. The house cost $219,000 when you purchased it four years ago. A recent appraisal on the house valued it at $239,000. If you sell the house you will incur $14,000 in real estate fees. The annual property taxes are $4,000. You are deciding whether to sell the house or convert it for your own use as a professional office. What value should you place on this house when analyzing the option of using it as a professional office? Explain your answer.

Explanation / Answer

Answer: Opportunity cost = $239,000 - $14,000 = $225,000

Related Questions

The main objective of this project is to be able to design, create and utilize c
Question #3718847
The main objective of this project is to be able to design, create and utilize c
Question #3824957
The main objectives of this lab include: Use pointers to manage a dynamic array
Question #3594144
The main organelles and structures involved by district function with milk produ
Question #92265
The main oxygen-carrying protein in red blood cells is _________________________
Question #42508
The main parameters in modeling the game are the numberof original people in the
Question #3612676
The main point in one-sample hypothesis testing is to determine The sample size
Question #3158182
The main point of the video \'Credit Card Debt Explained\" is: It can take a ver
Question #3121285

Navigate

Previous
The maintenance division of Speedy Taxi Company needs the following quantities o
Next
The maintenance manager at a trucking company wants to build a regression model

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.