A city is considering to buy a piece of land and constructing an office complex on it. Their planning horizon is 20 years. Three mutually exclusive building designs have been drawn up by the architectural firm. Use MARR of 10% per year to determine which alternative, if any, should be recommended to the city council. Use FW Method. Cost of building + land Resale value after 20 years Design A $1,300,000 $500.000 Design B $1,700,000 $900 000 Design C $3,500,000 $2.000.000

A city is considering to buy a piece of land and constructing an office complex on it. Their planning horizon is 20 years. Three mutually exclusive building designs have been drawn up by the architectural firm. Use MARR of 10% per year to determine which alternative, if any, should be recommended to the city council. Use FW Method. Cost of building + land Resale value after 20 years Design A $1,300,000 $500.000 Design B $1,700,000 $900 000 Design C $3,500,000 $2.000.000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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