Question: Please do the calculation for each alternative. Explain each calculation in depth and describe each formula used Cost Basis Analysis Apartment B 15 $305,000 $500/monthly

Please do the calculation for each alternative. Explain each calculation in depth and describe each formula used

 Please do the calculation for each alternative. Explain each calculation in

depth and describe each formula used Cost Basis Analysis Apartment B 15

$305,000 $500/monthly x 8 $850/monthly x 7 $9.950 Apartment A Number of

Apartments 15 Initial Investment $570,000 1 Bedroom $750/monthly x 10 2 Bedroom

$1250/monthly x 5 Monthly Income $13,750 (Before Expenses) Annual Maintenance $11,500 Cost

Cost Basis Analysis Apartment B 15 $305,000 $500/monthly x 8 $850/monthly x 7 $9.950 Apartment A Number of Apartments 15 Initial Investment $570,000 1 Bedroom $750/monthly x 10 2 Bedroom $1250/monthly x 5 Monthly Income $13,750 (Before Expenses) Annual Maintenance $11,500 Cost Property Taxes Per Year $22.800 Electricity / Month S60, $90 (1 Bed, 2 Bed) Water Bill/Month $22.00 (1 Bed, 2 Bed) $36.41 $5,000 $12,200 $60, $90 $22.00 $36.41 Total A Total B Apartment Furniture & Amenities Initial Cost Item Quantity Quantity Cost Per (Apartme (Apartme Unit nt A) nt B) Dishwashe 15 15 $300 $4.500 $4,500 1 Stove 15 15 $200 $3.000 $3,000 Fridge 15 15 $1000 $15,000 $15,000 Washer 15 15 $400 $6,000 $6,000 $5,250 15 15 $350 $5,250 Dryer Dining Table 15 15 $250 $3,750 $3,750 Chairs 30 30 $50 $1,500 $1,500 Couch 5 7 $500 $2,500 $3,500 Total $41,500 $42,500 Total Initial Investment Total Cost $570,000 $11,500 Apartment (A) Cost of Building Annual Maintenance Cost Property Taxes Per Year Electricity Per Year Water Bill Per Year Total Cost $22.800 $12.600 $4,824.60 5621,724.6 Apartment (B) Cost of Building $305,000 Annual Maintenance Cost $5,000 $12,200 Property Taxes Per Year Electricity Per Year Water Bill $13,320 $5.170.44 Total Cost $340,690.4 Total Cost $570,000 $11,500 Apartment (A) Cost of Building Annual Maintenance Cost Property Taxes Per Year Amenities Electricity Per Year Water Bill Per Year $22.800 $41,500 $12,600 S4.824.60 Total Cost S663224.60 Apartment (B) Cost of Building Annual Maintenance Cost $305,000 $5,000 Property Taxes Per Year $12.200 Alternative 1 Net Profit in 10, 20, 30 years for both complexes A and B if loan is paid off in 5 years with an MARR of 8%. For both complexes the annual costs will include the annual maintenance. property taxes per year, annual electricity payments, and annual water payments. For Example, Alternative A involves paying off the initial investment in 5 years using capital recovery to determine how much the initial investment costs per pay period. Calculate these values. Alternative 2 Calculate the Net Profit in 10, 20, 30 years for both complexes A and B if loan is paid off in 15 years with an MARR of 8%. For both complexes the annual costs will include the annual maintenance, property taxes per year, annual electricity payments, and annual water payments. Alternative 3 Calculate the Net Profit in 10. 20.30 years for both complexes A and B if the loan is paid off in 10 years with an MARR of 8%, however the company will pay for amenities and have tenants pay for electricity and water. Cost Basis Analysis Apartment B 15 $305,000 $500/monthly x 8 $850/monthly x 7 $9.950 Apartment A Number of Apartments 15 Initial Investment $570,000 1 Bedroom $750/monthly x 10 2 Bedroom $1250/monthly x 5 Monthly Income $13,750 (Before Expenses) Annual Maintenance $11,500 Cost Property Taxes Per Year $22.800 Electricity / Month S60, $90 (1 Bed, 2 Bed) Water Bill/Month $22.00 (1 Bed, 2 Bed) $36.41 $5,000 $12,200 $60, $90 $22.00 $36.41 Total A Total B Apartment Furniture & Amenities Initial Cost Item Quantity Quantity Cost Per (Apartme (Apartme Unit nt A) nt B) Dishwashe 15 15 $300 $4.500 $4,500 1 Stove 15 15 $200 $3.000 $3,000 Fridge 15 15 $1000 $15,000 $15,000 Washer 15 15 $400 $6,000 $6,000 $5,250 15 15 $350 $5,250 Dryer Dining Table 15 15 $250 $3,750 $3,750 Chairs 30 30 $50 $1,500 $1,500 Couch 5 7 $500 $2,500 $3,500 Total $41,500 $42,500 Total Initial Investment Total Cost $570,000 $11,500 Apartment (A) Cost of Building Annual Maintenance Cost Property Taxes Per Year Electricity Per Year Water Bill Per Year Total Cost $22.800 $12.600 $4,824.60 5621,724.6 Apartment (B) Cost of Building $305,000 Annual Maintenance Cost $5,000 $12,200 Property Taxes Per Year Electricity Per Year Water Bill $13,320 $5.170.44 Total Cost $340,690.4 Total Cost $570,000 $11,500 Apartment (A) Cost of Building Annual Maintenance Cost Property Taxes Per Year Amenities Electricity Per Year Water Bill Per Year $22.800 $41,500 $12,600 S4.824.60 Total Cost S663224.60 Apartment (B) Cost of Building Annual Maintenance Cost $305,000 $5,000 Property Taxes Per Year $12.200 Alternative 1 Net Profit in 10, 20, 30 years for both complexes A and B if loan is paid off in 5 years with an MARR of 8%. For both complexes the annual costs will include the annual maintenance. property taxes per year, annual electricity payments, and annual water payments. For Example, Alternative A involves paying off the initial investment in 5 years using capital recovery to determine how much the initial investment costs per pay period. Calculate these values. Alternative 2 Calculate the Net Profit in 10, 20, 30 years for both complexes A and B if loan is paid off in 15 years with an MARR of 8%. For both complexes the annual costs will include the annual maintenance, property taxes per year, annual electricity payments, and annual water payments. Alternative 3 Calculate the Net Profit in 10. 20.30 years for both complexes A and B if the loan is paid off in 10 years with an MARR of 8%, however the company will pay for amenities and have tenants pay for electricity and water

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