For a residential building project, the developer has estimated the capital investment, net rental revenue, and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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? Capital investment $2,039,684 Resale value Net annual benefit 8% n 1 2 3 4 5 6 7 8 9 Single Payment Compound Present Amount Worth Factor Find F Given P F/P 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 Optimistic Factor Find P Given F P/F 9259 8573 7938 7350 6806 6302 5835 5403 5002 $2,584,360 $263,645 Sinking Fund Factor Find A Given F A/F 1.0000 4808 3080 2219 1705 1363 1121 0940 0801 Find A Given P A/P 1.0800 5608 3880 3019 2505 Most Likely 2163 1921 1740 1601 $2,326,982 Compound Interest Factors Uniform Payment Series Capital Recovery Factor $245,561 $2,463,586 $2,347,682 Compound Present Amount Worth Factor Factor Find F Given A F/A 1.000 2.080 3.246 4.506 5.867 7.336 8.923 10.637 12.488 Find P Given A P/A 0.926 1.783 2.577 3.312 3.993 Pessimistic 4.623 5.206 5.747 6.247 $2,735,543 $199,228 Arithmetic Gradient Gradient Present Worth Gradient Uniform Series Find A Given G A/G 0 0.481 0.949 1.404 1.846 2.276 2,694 3.099 3.491 Find P Given G P/G 0 0.857 2.445 4.650 7.372 10.523 14.024 17.806 21.808 1 2 3 4 5 49 6 7 8% n 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Single Payment Compound Amount Factor Find F Given P F/P 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 2.332 2.518 2.720 2.937 3.172 Present Worth Factor Find P Given F P/F 9259 8573 .7938 7350 6806 .6302 5835 5403 5002 4632 4289 3971 3677 3405 3152 Sinking Fund Factor Find A Given F A/F 1.0000 4808 3080 2219 1705 .1363 1121 0940 0801 0690 0601 0527 0465 0413 0368 Compound Interest Factors Uniform Payment Series Capital Recovery Factor Find A Given P A/P 1.080 5608 3880 3019 2505 2163 1921 1740 1601 1490 1401 1327 1265 1213 1168 Compound Amount Factor Find F Given A F/A 1.000 2.080 3.246 4.506 5.867 7.336 8.923 10.637 12.488 14.487 16.645 18.977 21.495 24.215 27.152 Present Worth Factor Find P Given A P/A 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.710 7.139 7.536 7.904 8.244 8.559 Arithmetic Gradient Gradient Gradient Uniform Series Find A Given G A/G 0 0.481 0.949 1.404 1.846 2.276 2.694 3.099 3.491 3.871 4.240 4.596 4.940 5.273 5.594 Present Worth Find P Given G P/G 0 0.857 2.445 4.650 7.372 10.523 14.024 17.806 21.808 25.977 30.266 34.634 39.046 43.472 47.886 8% n 2 3 4 5 6 7 8 9 10 11 12 13 14 15 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? Capital investment $2,039,684 Resale value Net annual benefit 8% n 1 2 3 4 5 6 7 8 9 Single Payment Compound Present Amount Worth Factor Find F Given P F/P 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 Optimistic Factor Find P Given F P/F 9259 8573 7938 7350 6806 6302 5835 5403 5002 $2,584,360 $263,645 Sinking Fund Factor Find A Given F A/F 1.0000 4808 3080 2219 1705 1363 1121 0940 0801 Find A Given P A/P 1.0800 5608 3880 3019 2505 Most Likely 2163 1921 1740 1601 $2,326,982 Compound Interest Factors Uniform Payment Series Capital Recovery Factor $245,561 $2,463,586 $2,347,682 Compound Present Amount Worth Factor Factor Find F Given A F/A 1.000 2.080 3.246 4.506 5.867 7.336 8.923 10.637 12.488 Find P Given A P/A 0.926 1.783 2.577 3.312 3.993 Pessimistic 4.623 5.206 5.747 6.247 $2,735,543 $199,228 Arithmetic Gradient Gradient Present Worth Gradient Uniform Series Find A Given G A/G 0 0.481 0.949 1.404 1.846 2.276 2,694 3.099 3.491 Find P Given G P/G 0 0.857 2.445 4.650 7.372 10.523 14.024 17.806 21.808 1 2 3 4 5 49 6 7 8% n 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Single Payment Compound Amount Factor Find F Given P F/P 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 2.332 2.518 2.720 2.937 3.172 Present Worth Factor Find P Given F P/F 9259 8573 .7938 7350 6806 .6302 5835 5403 5002 4632 4289 3971 3677 3405 3152 Sinking Fund Factor Find A Given F A/F 1.0000 4808 3080 2219 1705 .1363 1121 0940 0801 0690 0601 0527 0465 0413 0368 Compound Interest Factors Uniform Payment Series Capital Recovery Factor Find A Given P A/P 1.080 5608 3880 3019 2505 2163 1921 1740 1601 1490 1401 1327 1265 1213 1168 Compound Amount Factor Find F Given A F/A 1.000 2.080 3.246 4.506 5.867 7.336 8.923 10.637 12.488 14.487 16.645 18.977 21.495 24.215 27.152 Present Worth Factor Find P Given A P/A 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.710 7.139 7.536 7.904 8.244 8.559 Arithmetic Gradient Gradient Gradient Uniform Series Find A Given G A/G 0 0.481 0.949 1.404 1.846 2.276 2.694 3.099 3.491 3.871 4.240 4.596 4.940 5.273 5.594 Present Worth Find P Given G P/G 0 0.857 2.445 4.650 7.372 10.523 14.024 17.806 21.808 25.977 30.266 34.634 39.046 43.472 47.886 8% n 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
For an infrastructure project, the capital investment is $9,444,684, the annual operation and maintenance cost is $765,468, the annual benefit is $2,463,494, and the salvage value is $1,817,805. If...
-
Chatham Automotive purchased new electric forklifts to move steel automobile parts two years ago. They cost $70,000 each, including the charging stand. In practice, it was found that they did not...
-
Your grandpa has been depositing $3000 every year in a bank for the last 4 years so that when you complete your master's in 6 years (no deposits in the last 2 years) you use that money to buy a car....
-
ME-1" Ltd. acquired 80% equity shares of You-2nd Ltd. on 30/04/2020 for a cost of GHS60,000. At that time the general reserves were GHe6,000 respectively.
-
Why does rent seeking imply that the traditional measure of deadweight loss from tariffs and quotas will likely understate the true deadweight loss to society?
-
Jyvaskyla Oy is a retail chain of supermarkets. For many years, it has used gross margin (selling price minus cost of goods sold) to guide it in deciding on which products to emphasise or...
-
According to the State of New York Unified Court System, names of potential jurors are selected from a variety of different sources. When a trial requires a jury, names from the list are randomly...
-
Wallis Car Wash, Inc., expected to wash 2,000 cars during the month of August. Washing each car was expected to require 0.2 hours of labor. The company actually used 420 hours of labor to wash 1,880...
-
Competing in the global marketplace requires firms to select a global strategy. What strategy would you select for an international expansion of a Colorado based fast-food restaurant versus...
-
3. In column G, Brett wants to calculate the number of days the invoice is overdue. If the age of the invoice is greater than 30 days, it is overdue. Calculate the days overdue as follows: a. b. C....
-
What steps could Bachus take against a competitor who paid a certain amount to a Bachus employee in exchange of the disclosure by this employee of the special conditions and processes required by the...
-
= 24.0 cm and b = 50.0 cm. 5. Three point-like charges are placed at the corners of a rectangle as shown in the figure, a = Find the minimum amount of work required by an external force to move the...
-
7. Suggest; a. THREE (3) suitable servicescape elements in designing physical surroundings to affect the behaviour of cruise crew and passengers. (6 marks) b. TWO (2) approaches in managing waiting...
-
Laws on tort self-defense and the defense of others, especially the privilege of Necessity. Scope of defenses and privileges. What are the effect of successfully asserting a defense or privilege to a...
-
Case Study: Challenges in Auditing Small and Medium-sized Enterprises (SMEs) Introduction: Auditing small and medium-sized enterprises (SMEs) presents a unique set of challenges due to their specific...
-
You cause a particle to move from point A, where the electric potential is 18.9 V, to point B, where the electric potential is -29.1 V. Calculate the change that occurs in the particle's...
-
tan(x + 120) tan(x - 30 If x is a solution to the above equation and cos(4x) b. = a b = 11 2 where a and b are coprime positive integers, then find a +
-
Why do bars offer free peanuts?
-
Complete problem P10-23 using ASPE. Data from P10-23 Dried Canned Original cost $9,000,000 $12,000,000 Accumulated depreciation 3,700,000 4,500,000 Fair value 6,100,000 7,300,000 Costs to sell...
-
Information pertaining to select activities of Rosamelia Corp. during 2017 is set out below: On January 1, 2017, Rosamelia acquired equipment under a finance lease. The lease calls for five annual...
-
Super Computers Inc. (SCI) is a publicly accountable enterprise that manufactures computer microchips. It is conducting various impairment tests in concert with the preparation of its financial...
-
Zhang Ltd acquired the business of Azzam Ltd for a cash outlay of $5 000 000 on 1 July 2019. The summarised balance sheet of Azzam Ltd on that date was as follows. Most of the assets were recorded at...
-
The following information was obtained from the accounting records of Crothers Ltd. On 1 July 2019, vehicle A was traded in for vehicle B. The tradein price for vehicle A was determined to be $21...
-
Deduhin Ltd acquired two new machines for cash on 1 January 2017. The cost of machine A was $400 000, and of machine B, $600 000. Each machine was expected to have a useful life of 10 years, and...
Study smarter with the SolutionInn App