19. Mr Arguillonis considering building a 25-unit apartment in a place near a progressive commercial center. He felt that because of the location of the apartment, it will be occupied 90% at all time. He desires a rate of return of 20%. Other pertinent data are the following: Land investment Building investment Study period Cost of land after 20 years Rent per unit per month Upkeep per unit per year Property taxes Insurance P 5,000,000 7,000,000 20 years 2,000,000 6,000 500 1% 0.50% W& Is this a good investment?

19. Mr Arguillonis considering building a 25-unit apartment in a place near a progressive commercial center. He felt that because of the location of the apartment, it will be occupied 90% at all time. He desires a rate of return of 20%. Other pertinent data are the following: Land investment Building investment Study period Cost of land after 20 years Rent per unit per month Upkeep per unit per year Property taxes Insurance P 5,000,000 7,000,000 20 years 2,000,000 6,000 500 1% 0.50% W& Is this a good investment?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

19. Mr Arguillonis considering building a 25-unit apartment in a place near a progressive
commercial center. He felt that because of the location of the apartment, it will be
occupied 90% at all time. He desires a rate of return of 20%. Other pertinent data are
the following:
Land investment
P 5,000,000
7,000,000
Building investment
Study period
Cost of land after 20 years
Rent per unit per month
Upkeep per unit per year
Property taxes
Insurance
20 years
2,000,000
W &
6,000
500
1%
0.50%
Is this a good investment?

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