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6.Wal-Mart has approached you with the opportunity to enter a sale lease-back transaction with them on a one million square ...

a one million square foot warehouse that they have recently developed. In typical Wal-Mart fashion, they have given you a “take it, or leave it” final offer. The terms are: Purchase Price: $165 million Facility Size 1,000,000 SF Lease Term 7 years Rent $7 PSF NNN Operating Expenses Wal-Mart (tenant) pays all operating expenses, utilities, and property taxes (owner pays none) Renewal Options 7-year extension at $8 per ft2; a second 7 year extension at $9.50 per ft 2; a third 7 year extension at $11.50 per ft.2. All at Wal-Mart’s choice (i.e. it’s Wal-Mart’s option). Wal-Mart pays all operating expenses, utilities, property taxes, and capital expenditures undertaken during all lease renewal periods. You know the market and feel that the location is good, and that the warehouse market is in good supply/demand balance. Vacancy rates are 4% - 5% in quality facilities, while net rents in the market are running about $7.50 - $8 PSF (i.e. a slight premium to the Wal-Mart lease). You have recently seen comparable sales that have traded in the range of $160 - $200 PSF. You also know that implied discount rates are currently at about a 3% premium to implied cap rates and capital costs are running at $0.50 PSF per annum. You know from your Real Estate Finance & Investments classes that you can value a building using a direct capitalization approach, a comps analysis and a DCF analysis. You also have a handy template that you’ve been using for these analyses which you will need to complete in order to come to a view on value. It’s decision time…would you agree to pay the $165 million that Wal-Mart is asking? Why or why not?
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7.hey, I need help in explaining the essentials of investment by McGraw hill, but just to be clear I don't ...

on't really know much about finance and English is my second language
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Basic Concepts in Economics:

Economics have mainly five concepts

  • Purchasing power - 
  • Demand and supply
  • Scarcity of resources
  • Time value of money
  • Opportunity cost
     

Economics is divided into two types:
 

Microeconomics
 

Micro derived from the greek word “Mikros” meaning small ,so it deals with the choices of a single entity or say individual unit such as consumer, household, a firm , industry and price of a product.

Micro economics studies

  • Product pricing
  • Consumer behavior
  • Factor pricing evaluation   
  • Firms behavior
  • Industry’s location
     

Macroeconomics
 

Micro economics studies

  • National income
  • General price level
  • Employment level
  • Saving and investment level
  • BoP (balance of payment) & BoT (balance of trade)

     

Economics Homework Questions & Answers - Sample

Question 1: Which variable is not a part of macroeconomics ?

(a) Gross Domestic product

(b) Consumer Behaviour

(c) Total expenditure of a nation

(d) Inflation rate.

Answer :  b, as it is a variable of micro economics
 

Question 2:  Explain the variable of microeconomics.

Answer : Variables that deal with the individual units are the part of the microeconomics.

For example - 

  • Behaviour of a consumer
  • Production of a local business unit
  • Product pricing etc
     

Question 3: From where the word micro derived and what does it mean?

Answer : The word micro is derived from a greek word “Mikros” which means small.

 

Need help with microeconomics, macroeconomics and business problems?

Economics is a branch of social science that is vast in nature and covers a lot of theory aspects. Economics as a subject is commonly studied by high school & college students and is divided into the two primary branches commonly referred to as – micro & macro economics.  


Economics students not only deal with a theoretical concept but also need to comprehend data from the graphs, identify patterns, produce forecasting reports and even conduct deeper research to understand the models of economics such as the correlation between elasticity of demand and opportunity cost or how does monopoly impact the supply and demand of goods and services in a given industry. Understanding consumer behavior is another important aspect of economics and the most tricky one too. 


At TutorEye, we have designed our economics homework help service to help students get to the details & get guidance on assignments or economics essays without worrying
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Our economics tutors have years of industry and teaching experience which helps them provide guidance to students from all basic to advanced level topics. 

 

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