Assuming the going-in capitalization rate is 8.00 percent, compute a value for the property using direct capitalization. cash flow from operations: year 1 2 3 4 5 noi $150,000 $150,000 $150,000 $150,000 $150,000 debt service $125,000 $125,000 $125,000 $125,000 $125,000 cash flow at sale: sale price: $2,000,000 cost of sale: $125,000 mortgage balance: $1,500,000

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

if you do not file your taxes you will not have a job, and you credit rate will go down.