In May 2013, Rebecca Young completed her MBA and moved to Toronto for a new job in investment
banking. There, she rented a spacious, two-bedroom condominium for $3,000 per month, which included
parking but not utilities or cable television. In July 2014, the virtually identical unit next door became
available for sale with an asking price of $620,000, and Young believed she could purchase it for
$600,000. She realized she was facing the classic buy-versus-rent decision. It was time for her to apply
some of the analytical tools she had acquired in business school — including “time value of money”
concepts — to her personal life.
While Young really liked the condominium unit she was renting, as well as the condominium building
itself, she felt that it would be inadequate for her long-term needs, as she planned to move to a house or
even to a larger penthouse condominium within five to 10 years — even sooner if her job continued to
work out well.
Friends and family had given Young a variety of mixed opinions concerning the buy-versus-rent debate,
ranging from “you’re throwing your money away on rent” to “it’s better to keep things as cheap and
flexible as possible until you are ready to settle in for good.” She realized that both sides presented good
arguments, but she wanted to analyze the buy-versus-rent decision from a quantitative point of view in
order to provide some context for the qualitative considerations that would ultimately be a major part of
her decision.
FINANCIAL DETAILS
If Young purchased the new condominium, she would pay monthly condo fees of $1,055 per month, plus
property taxes of $300 per month on the unit. Unlike when renting, she would also be responsible for
repairs and general maintenance, which she estimated would average $600 per year.
If she decided to purchase the new unit, Young intended to provide a cash down payment of 20 per cent
of the purchase price. There was also a local deed-transfer tax of approximately 1.5 per cent of the
purchase price, and a provincial deed-transfer tax of 1.5 per cent, both due on the purchase date. (For
Page 2
9B14N024
simplicity, Young planned to initially ignore any other tax considerations throughout her analysis.) Other
closing fees were estimated to be around $2,000.
In order to finance the remaining 80 per cent of the purchase price, Young contacted several lenders and
found that she would be able to obtain a mortgage at a 4 per cent “quoted” annual rate1 that would be
locked in for a 10-year term and that she would amortize the mortgage over 25 years, with monthly
payments. The money that Young was planning to use for her down payment and closing costs was
presently invested and was earning the same effective monthly rate of return as she would be paying on
her mortgage. Young assumed that if she were to sell the condominium — say, in the next two to 10 years
— she would pay 5 per cent of the selling price to realtor fees plus $2,000 in other closing fees.
SCENARIO ANALYSIS
In order to complete a financial analysis of the buy-versus-rent decision, Young realized that her first task
would be to determine the required monthly mortgage payments. Next, she wanted to determine the
opportunity cost (on a monthly basis) of using the lump-sum required funds for the condominium
purchase rather than leaving those funds invested and earning the effective monthly rate, assumed to be
equivalent to the mortgage rate. She would then be able to determine additional monthly payments
required to buy the condominium compared to renting, including the opportunity cost.
Young wanted to consider what might happen if she chose to sell the condominium at a future date. She
was confident that any re-sell would not happen for at least two years, but it could certainly happen in five
or 10 years’ time. She needed to model the amount of the outstanding principal at various points in the
future — two, five or 10 years from now. She then wanted to determine the net future gain or loss after
two, five and 10 years under the following scenarios, which she had determined were possible after some
due diligence regarding future real-estate prices in the Toronto condo market: (a) The condo price
remains unchanged; (b) The condo price drops 10 per cent over the next two years, then increases back to
its purchase price by the end of five years, then increases by a total of 10 per cent from the original
purchase price by the end of 10 years; (c) The condo price increases annually by the annual rate of
inflation of 2 per cent per year over the next 10 years; and (d) The condo price increases annually by an
annual rate of 5 per cent per year over the next 10 years.
FINAL CONSIDERATIONS
Young realized she had a tough decision ahead of her, but she was well trained to make these types of
decisions. She also recognized that her decision would not be based on quantitative factors alone; it would
need to be based on any qualitative considerations as well. She knew she needed to act soon because
condominiums were selling fairly quickly, and she would need to arrange financing and contact a lawyer to
assist in any paperwork if she decided to buy
Requirements:
1. determine the required monthly payments for the mortgage.
2. determine the ‘opportunity’ cost, on a monthly basis, of using the required funds for closing (i.e., down payment plus all closing costs), rather than leaving those funds invested and earning the monthly effective rate determined in question (1).
3. determine the monthly additional paymentd required to buy versus rent ( include the monthly opportunity costs determined in question (2).
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In March 2014 Andrew Thorne Acquired A Four Unit Apartment Building At A Cost Of
/in Uncategorized /by developerIn march 2014 andrew thorne acquired a four unit apartment building at a cost of $875,000. Of this total, it is estimated that the land on which the building is situated is worth $185,000. The units in the apartment are similar in size and for purposes of allocation to a CCA class, the property is considered to be a single asset.
Two of the units will be rented on a furnished basis. To this end, Andrew has acquired furniture at a cost of $43,000.
During April 2014, all of the units were rented for the remainder of the year. For this year, the units generated rents of $63,600 and expenses, other than CCA, of $23,400 were incurred.
In July 2015, the tenants in both of the furnished units terminate their leases, and move out. Because he is unable to find tenants who are interested in furnished units, the two units remain empty for three months. Given this situation, Andrew sells all of the furniture for $31,000.
During 2015, the units generate rents f $54,500. Expenses for the year, other than CCA, total $29,400.
Andrew deducts the maximum CCA allowable in both 2014 and 2015.
Required: Calculate the Net Rental income for each of the two years 2014 and 2015. Also, determine his UCC balances on January 1, 2016. Include in your solution and tax consequences associated with the sale of the furniture.
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In March 20×4 Rr Ltd Traded In Land Market Value Of 10 000 Plus Cash Of 16 500 F
/in Uncategorized /by developer3. In March 20X4, R&R Ltd. traded in land (market value of $10,000) plus cash of $16,500 for another piece of land with a market value of $24,000. The old land was intended to be used for parking and the new land was intended to be used for a warehouse. In December 20X4,the newly traded land had a market value of $34,000. In December 20X5, the land had a market value of $26,000. R&R uses the revaluation model for this asset class. Assume the transaction has commercial substance.
How should R&R record, in part, the land revaluation in December 20X5?
a) Debit revaluation loss for $500
b) Debit revaluation loss for $8,000
c) Debit revaluation surplus for $8,000
d) Credit revaluation surplus for $2,000
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In March A Derivatives Dealer Offers You The Following Quotes For June British P
/in Uncategorized /by developerIn March, a derivatives dealer offers you the following quotes for June British pound option contracts (expressed in U.S. dollars per GBP):Market price of contractcontract/strike price/bid/offercall/USD 1.40/0.0642/0.0647put/0/0.0255/0.0260call/USD 1.44/0.0417/0.0422put/0/0.0422/0.0427call/USD 1.48/0.0255/0.0260put/0/0.0642/0.0647Assuming each of these contracts specifies the delivery of GBP 31,250 and expires in exactly three months, complete a table similar to the following (expressed in dollars) for a portfolio consisting of the following positions:(1)long one 1.44 call(2)short one 1.48 call(3) long one 1.40 put(4) short one 1.44 putJune USD/GBP1.361.401.441.481.52
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In March Of 1996 A Special Release Of Water Q 1270 M 3 S Was Made From The Glenn
/in Uncategorized /by developerIn march of 1996 a special release of water, Q=1270 m3/s, was made from the Glenn Canyon Dam, to create an artificial flood in the Grand Canyon.
a) the flow was through 8 pipes, each with internal diameter of 2.5m. Estimate the velocity through those pipes
b) Estimate the average velocity of the river at some point downstream of the dam, where the width of the river was 61m and its average depth was 3m.
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In March Volunteers For A Charity Walkathon In Toronto Raised 89 351 Volunteers 1
/in Uncategorized /by developerIn March, volunteers for a charity walkathon in Toronto raised $89,351. Volunteers in Montreal raised $102,459. Volunteers in Edmonton raised $78,505. a. Round each amount to the nearest thousand dollars.b. Add the rounded amounts to estimate the total amount of money raised.c. Use the estimate to choose the exact total from among the following.
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In Marchin 1 20 Show That The Firm Function Is Our To One And Find It S Imrie C
/in Uncategorized /by developerhelp answering this question as soon as possible. thank you. Only question number 4
In Marchin 1 . 20, show that the Firm function is our- to-one and find It’s Imrie . Clark yourManY Is milerhimically and singhically . Verify that the range of $ is the damningat } and vice- Trial .1. Mil = Hir – ?2. Mil = 12 – 1)I _ _1 . Mil = 1 – 1`. Mil = Vir – 1 + 0I. MIl = ] – VI – ^T. MIl = QV 1 – 1 – 1){` MI) = 1 – 2V21 + 5
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In Math We Trust It Vhs Police Department 97 65 Virtual Land Vhis Police Fall
/in Uncategorized /by developerQuestion:Part 1: Calculations
As an Expert Mathematics Witness, you have been presented with a Ballistics Report, and a Police Report as your evidence. Use the information provided within these files to prove who, out of the three suspects, is guilty of the crime.
Use the links below to download the files:
Question 1 (1 point)
Using the evidence provided, complete all calculations necessary to conclude which window the shooter fired from. E-mail these calculations to your teacher and wait for feedback. Then make any necessary corrections before moving on to Part 2.
Question 1 options: Hint: Complete the diagram with the given information found in the Police and Ballistics Reports. Then express the height that the bullet is fired from in terms of the bullet’s angle of entry and the angle W. Use this as a starting point to determine which window the gun was fired from.
NOTE: This is a 3d diagram. The building is perpendicular to the ground. Triangle VGH is on the plane of the ground. VGH shares a side with the building which is perpendicular to the ground.
There is a solution on course hero but it is wrong because the line HG doesn’t go all the way straight to the bottom.
In Math,We Trust- IT-VHS Police Department97:$65 Virtual LandVHIS Police*Fallhedge , CAReport $ 56987Date of Incident : June 21Reporting Officer : H. Sine , Crime Scene Investigator*IncidentOn June 21 at the location of 360 Trigonometric Apartments , " victim shot by the suspect at 7:13 p.mfrom the window of the building .The building Is a high rise apartment building with ten floors . There were residents home from the 5#^I’m, and I" floors from a unit facing the road where the victim was shot . There Is 3. 04 } m between eachapartment floor .`All suspects have pleaded not guilty and claims to not have any relations with the victim . At the time ofthe crime the victim was walking their dog .Witness StatementWitness : C. TanC. Tan I’My was 10’m away from the victim (V/ when the shot was fired . Both the victim and the witness*we’re an equal distance from the door ( G ) of the apartment building when the crime occurred . ( SeeFigure 1 1" I heard a loud bang from the apartment building . When I looked up I saw a person running*from a window . The victim was not far from where I was standing when the Incident occurred . IImmediately called the VHS Police Department emergency line for help . "Crime Scene Sketch_IT th FreeH jet^ Floor_^`FloodVictim10 mWitness
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In May 2007 A Local Chemical Plant Had An Unfortunate Accident Chemicals Leaked
/in Uncategorized /by developerIn May 2007, a local chemical plant had an unfortunate accident. Chemicals leaked from a plant holding tank and seeped onto the parking lot. A number of employee vehicles were damaged and required repainting. The company agreed to reimburse employees for the cost of these repairs. Employees were instructed to submit their bills for the repairs to the Controller, Rob Trout. Rob would then issue a check to the employee for the amount of the bill. While the Internal Auditor Director questioned the Audit Committee about the monitoring of the reimbursements during a meeting a month after the accident, the Committee determined that procedures in place were adequate. Nine months later, at a full board meeting, someone made a remark about the fact that bills were still being turned in for reimbursement. By this time, the total of the damages reimbursed to employees had reached nearly $150,000. After making inquiries, it was discovered that some of the “repairs” were for expensive paint jobs, upgrades, buffing, body repairs, and waxing. Further investigation revealed that thousands of dollars were reimbursed for paint jobs on cars that were damaged prior to the industrial accident. Moreover, some employees had turned in bills for similar jobs just a few months apart in other words, some cars were reimbursed for the same repair twice. Although this appeared suspicious, no one caught it until the internal auditors came in one year after the accident _in response to the board’s inquiry and reviewed the invoices and compared them with the employee list and cars repainted.
What steps should have been taken by the company to prevent this fraudulent activity from occurring?
How could information already in the accounting system have been used to minimize the opportunity for fraud?
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In May 2013 Rebecca Young Completed Her Mba And Moved To Toronto For A New Job I
/in Uncategorized /by developerIn May 2013, Rebecca Young completed her MBA and moved to Toronto for a new job in investment
banking. There, she rented a spacious, two-bedroom condominium for $3,000 per month, which included
parking but not utilities or cable television. In July 2014, the virtually identical unit next door became
available for sale with an asking price of $620,000, and Young believed she could purchase it for
$600,000. She realized she was facing the classic buy-versus-rent decision. It was time for her to apply
some of the analytical tools she had acquired in business school — including “time value of money”
concepts — to her personal life.
While Young really liked the condominium unit she was renting, as well as the condominium building
itself, she felt that it would be inadequate for her long-term needs, as she planned to move to a house or
even to a larger penthouse condominium within five to 10 years — even sooner if her job continued to
work out well.
Friends and family had given Young a variety of mixed opinions concerning the buy-versus-rent debate,
ranging from “you’re throwing your money away on rent” to “it’s better to keep things as cheap and
flexible as possible until you are ready to settle in for good.” She realized that both sides presented good
arguments, but she wanted to analyze the buy-versus-rent decision from a quantitative point of view in
order to provide some context for the qualitative considerations that would ultimately be a major part of
her decision.
FINANCIAL DETAILS
If Young purchased the new condominium, she would pay monthly condo fees of $1,055 per month, plus
property taxes of $300 per month on the unit. Unlike when renting, she would also be responsible for
repairs and general maintenance, which she estimated would average $600 per year.
If she decided to purchase the new unit, Young intended to provide a cash down payment of 20 per cent
of the purchase price. There was also a local deed-transfer tax of approximately 1.5 per cent of the
purchase price, and a provincial deed-transfer tax of 1.5 per cent, both due on the purchase date. (For
Page 2
9B14N024
simplicity, Young planned to initially ignore any other tax considerations throughout her analysis.) Other
closing fees were estimated to be around $2,000.
In order to finance the remaining 80 per cent of the purchase price, Young contacted several lenders and
found that she would be able to obtain a mortgage at a 4 per cent “quoted” annual rate1 that would be
locked in for a 10-year term and that she would amortize the mortgage over 25 years, with monthly
payments. The money that Young was planning to use for her down payment and closing costs was
presently invested and was earning the same effective monthly rate of return as she would be paying on
her mortgage. Young assumed that if she were to sell the condominium — say, in the next two to 10 years
— she would pay 5 per cent of the selling price to realtor fees plus $2,000 in other closing fees.
SCENARIO ANALYSIS
In order to complete a financial analysis of the buy-versus-rent decision, Young realized that her first task
would be to determine the required monthly mortgage payments. Next, she wanted to determine the
opportunity cost (on a monthly basis) of using the lump-sum required funds for the condominium
purchase rather than leaving those funds invested and earning the effective monthly rate, assumed to be
equivalent to the mortgage rate. She would then be able to determine additional monthly payments
required to buy the condominium compared to renting, including the opportunity cost.
Young wanted to consider what might happen if she chose to sell the condominium at a future date. She
was confident that any re-sell would not happen for at least two years, but it could certainly happen in five
or 10 years’ time. She needed to model the amount of the outstanding principal at various points in the
future — two, five or 10 years from now. She then wanted to determine the net future gain or loss after
two, five and 10 years under the following scenarios, which she had determined were possible after some
due diligence regarding future real-estate prices in the Toronto condo market: (a) The condo price
remains unchanged; (b) The condo price drops 10 per cent over the next two years, then increases back to
its purchase price by the end of five years, then increases by a total of 10 per cent from the original
purchase price by the end of 10 years; (c) The condo price increases annually by the annual rate of
inflation of 2 per cent per year over the next 10 years; and (d) The condo price increases annually by an
annual rate of 5 per cent per year over the next 10 years.
FINAL CONSIDERATIONS
Young realized she had a tough decision ahead of her, but she was well trained to make these types of
decisions. She also recognized that her decision would not be based on quantitative factors alone; it would
need to be based on any qualitative considerations as well. She knew she needed to act soon because
condominiums were selling fairly quickly, and she would need to arrange financing and contact a lawyer to
assist in any paperwork if she decided to buy
Requirements:
1. determine the required monthly payments for the mortgage.
2. determine the ‘opportunity’ cost, on a monthly basis, of using the required funds for closing (i.e., down payment plus all closing costs), rather than leaving those funds invested and earning the monthly effective rate determined in question (1).
3. determine the monthly additional paymentd required to buy versus rent ( include the monthly opportunity costs determined in question (2).
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In May Parr And Presba While In The Course Of Negotiations With Barker A Salespe
/in Uncategorized /by developerIn May, Parr and Presba, while in the course of negotiations with Barker (a salesperson for Quaker Hill) to purchase plants and flowers, undertook to organize a corporation to be named the Denver Memorial Nursery, Inc. On May 14 and 16, Parr signed two orders on behalf of Denver Memorial Nursery, Inc. which, to the knowledge of Quaker Hill, was not yet formed, that fact being noted in the contract. A down payment in the amount of $1,000 was made. The corporation was not formed prior to entering into the contract because Quaker Hill insisted that the deal be concluded at once since the growing season was rapidly passing. Under the contract, the balance of the purchase price was not due until the end of the year. The plants and flowers were shipped immediately and arrived on May 26. The Denver Memorial Nursery, Inc. was never formed. Quaker Hill seeks to recover the unpaid balance of the purchase price from Parr and Presba.
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