Question: Question 2 (10 points): An owner is considering three different design alternatives (standard, upgrade, premium) for building a rental property, Standard Upgrade Premium Construction cost
Question 2 (10 points): An owner is considering three different design alternatives (standard, upgrade, premium) for building a rental property, Standard Upgrade Premium Construction cost $410,000 $480,000 $550.000 Annual maintenance cost $7,000 $7,000 $6,000 $25,000 Annual rental revenue $28.000 $31,000 Resale value after 10 years $480,000 $550.000 $600,000 If the owner's MARR is 5%, which design alternative should be selected using the rate-of- return analysis over a 10-year analysis period
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