An investor is considering buying some land for $100,000 and constructing an office building three different buildings
Question:
*Resale value to be considered a reduction in cost, rather than a benefit.
Using benefit-cost ratio analysis and an 8% MARR, determine which alternative, if any, should be selected.
Transcribed Image Text:
Building Height 2 Stories 5 Stories 10 Stories Cost of building $400,000 $800,000 $2,100,000 (excluding cost of land) Resale value of 200,000 300,000 400,000 land and building at end 20-year analysis period Annual rental 70,000 105,0C0 256,000 income after all operatung expenses have been deducted
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Related Book For
Engineering Economic Analysis
ISBN: 9780195168075
9th Edition
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
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