The owner of a downtown parking lot has employed a civil engineering consulting firm to advise him

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The owner of a downtown parking lot has employed a civil engineering consulting firm to advise him on the economic feasibility of constructing an office building on the site. Bill Samuels, a newly hired civil engineer, has been assigned to make the analysis. He has assembled the following data:
The owner of a downtown parking lot has employed a

*Includes the value of the land.
The analysis period is to be 15 years. For all alternatives, the property has an estimated resale (salvage) value at the end of 15 years equal to the present total investment. If the MARR is 10%, what recommendation should Bill make?

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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Engineering Economic Analysis

ISBN: 9780195168075

9th Edition

Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle

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