Genaro Needs to Capture a Return of 40 Percent for His

question 54

Multiple Choice

Genaro needs to capture a return of 40 percent for his one-year investment in a property. He believes that he can sell the property at the end of the year for $150,000 and that the property will provide him with rental income of $25,000. What is the maximum amount that Genaro should be willing to pay for the property?

• A) $112,500
• B) $125,000
• C) $137,500
• D) $150,000

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Definitions:

Written Statement

A formal account or declaration of facts or opinions put in writing as proof or evidence of something.

Emotional Response

The psychological and physical reactions to emotional stimuli, affecting mood and behavior.

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.

Researcher's Hypothesis

A statement or prediction that a researcher sets out to test through experimental or observational study.