Wayne is planning to sell the twenty-room apartment building he bought fifteen years ago, for which he paid $759,000. the real estate market in his area has been falling since that time, and the property has decreased in value by 3.8% every year. wayne rents each of his apartments for $495 per month, and upkeep on the building costs him $26,400 annually. assuming that wayne has kept his apartment complex constantly three-quarters full, what will his net profit or loss be when he sells the building, to the nearest hundred dollars? a. $61,500 loss b. $722,400 loss c. $168,000 profit d. $606,000 profit please select the best answer from the choices provided a b c d

When Wayne sells the building, his net profit will be about $606,000 (assumed he has kept his apartment complex consistently three-quarters filled).

Revenues Per Year: What Do They Mean?

The total amount of money a business earns each year through the sale of all of its products, services, assets, and capital is referred to as annual revenue. We don't include in any of your costs when calculating your annual revenue. In income statements, the word "sales" is often used to denote revenue.

The sole term used is net profit.

Net profit, which is the same as net income, is the amount that a business keeps after all costs have been paid. The cost of regular business operations, taxes, and depreciation are deducted from the total. The "bottom line," also known as a company's net profit, is a reliable predictor of how profitable the enterprise will be.

Initially, ascertain the annual revenue provided by:

Annual Revenue = Month's Rent X No. of Rooms X No. of months X Three-quarters

Annual Revenue = 495 X 20 X 12 X (3/4) = $89100

Total Profit = (Annual Revenue - Annual Cost) X (Number of years)

= (89100 - 26400) X 15

= $940500

Now, the following formula calculates Wayne's net profit when he sells the building:

Net Profit = Value of the building at the end of the 15th year + Total profit from renting - Cost of the building

Net Profit = 424490.38 + 940500 - 759000 = 605990.38

Net Profit = $606000 (approx.)

Learn more about net profit: https://brainly.com/question/18703681

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