Why doesn't the Building cost (2M) doesn't goes in the Expenses for that Year? Wasn't that an investment in that business, and therefor it should affect both profits and be on a very negative value for that year?
Economic profit: the loss would probably be higher if you calculate in amortization and interest costs? I just assume a lot of real estate buyers use debt financing as part of the purchase? Just a thought.
So if I have the money up front it's probably more profitable to rent a property.
if I have to take out a loan to invest in other risky heavily monitored investments at 10 percent would you take such a risk? What would be your minimum threshold of held assets? Would 1 million be enough to risk another million in loan money?
Why doesn't the Building cost (2M) doesn't goes in the Expenses for that Year? Wasn't that an investment in that business, and therefor it should affect both profits and be on a very negative value for that year?
dpatulea 1 month ago in playlist More videos from khanacademy
Well in the long run, owning a property should be the thing to do since renting will never give you an asset.
yarisblack 1 month ago
you do really great videos i have to say
chadro85 1 month ago 4
how do you do that
vic1596 1 month ago
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Pukpao1000 1 month ago
Who are these people disliking this video? Probably Marxists lol
FrankiePoker 1 month ago
Economic profit: the loss would probably be higher if you calculate in amortization and interest costs? I just assume a lot of real estate buyers use debt financing as part of the purchase? Just a thought.
DinkerTinker1 1 month ago
So if I have the money up front it's probably more profitable to rent a property.
if I have to take out a loan to invest in other risky heavily monitored investments at 10 percent would you take such a risk? What would be your minimum threshold of held assets? Would 1 million be enough to risk another million in loan money?
ubentu 1 month ago
2th comment lol
awesome video.
ben1996123 1 month ago
@ben1996123 2th... that sounds like tooth...
TheOfficialZTP 1 month ago 9
@TheOfficialZTP
seconth
ben1996123 1 month ago
@ben1996123 still wrong...!
TheOfficialZTP 1 month ago
You are awesome
dyno434 1 month ago in playlist Microeconomics