Question: For a residential building project, the developer has estimated the capital investment, net rental revenue, and resale value after 6 years for the following three

For a residential building project, the developer has estimated the capital investment, net rental revenue, and resale value after 6 years for the following three scenarios. Given the developer's MARR is 8%, what is the estimated B/C ratio of this project? Optimistic Most Likely PESSImISiJC Capital investment $2,133,500 $2,333,274 $2,679,365 Resale value $2,562,183 $2,474,997 $2,358,071 Net annual benet $283,780 $239,890 $219,559 8% Comeound Interest Factors 8% Single Payment Uniform Payment Series Arithmetic Gradient Compound Present Sinking Capital Compound Present Gradient Gradient Amount Worth Fund Recovery Amount Worth Uniform Present Factor Factor Factor Factor Factor Factor Series Worth Find F Find P Find A Find A Find F Find P Find A Find P Given P Given F Given F Given P Given A Given A Given 6 Given 6 n F/P P/F A/F A/P HA HA A/G P/G n 1 1.080 .9259 1.0000 1.0800 1.000 0.926 0 0 1 2 1.166 .3573 .4308 .5608 2.080 1.783 0.481 0.857 2 3 1.260 .7938 .3080 .3 880 3.246 2.5 77 0.949 2.445 3 4 1.360 .7350 .2219 .3019 4.506 3.312 1.404 4.650 4 5 1.469 .6806 .1705 .2505 5.867 3.993 1.846 7.372 S 6 1.587 .6302 .1363 .2163 7.336 4.623 2.276 10.523 6 7 1.714 .5835 .1121 .1921 8.923 5.206 2.694 14.024 7 8 1.85l .5403 .0940 .1740 \"1.637 5.747 3.099 17.806 8 9 1.999 .5002 .0801 .1601 12.483 6.247 3.491 21 .8013 9 10 2.159 .4632 .0690 .1490 14.487 6.710 3.871 25.977 10 1] 2.332 .4289 .0601 .1401 16.645 7.139 4.240 30.266 11 12 2.518 .3971 .0527 .1327 18.977 7.536 4.596 34.634 12 13 2.720 .3677 .0465 .1265 21.495 7.904 4.940 39.046 13 14 2.937 .3405 .0413 .1213 24.215 8.244 5.273 43.472 14 15 3.172 .3152 .0368 .1168 27.152 8.559 5.594 47.8136 15
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