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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
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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What is FW of A? No need to write the $ sign.

ASSI 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 Annual net rental income Design A $1,300,000 $500,000 $120,000 Design B $1,700,000 $900,000 $300,000 Design C $3,500,000 $2,000,000 $450,000
Transcribed Image Text:ASSI 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 Annual net rental income Design A $1,300,000 $500,000 $120,000 Design B $1,700,000 $900,000 $300,000 Design C $3,500,000 $2,000,000 $450,000
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