A construction company wants to build a 50 housing unit apartment complex and rent them. It is expected that a 90% occupancy rate. When you consider below financial data, how much rent it has to charge per housing unit to guarantee annual %15 income Land Value 1.000.000 $, Construction Cost 2.500.000 $, Annual Maintenance cost 150.000 $, Real Estate Tax as 5% of total investment cost Analysis Period 25 years, Salvage value is only land value
A construction company wants to build a 50 housing unit apartment complex and rent them. It is expected that a 90% occupancy rate. When you consider below financial data, how much rent it has to charge per housing unit to guarantee annual %15 income Land Value 1.000.000 $, Construction Cost 2.500.000 $, Annual Maintenance cost 150.000 $, Real Estate Tax as 5% of total investment cost Analysis Period 25 years, Salvage value is only land value
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17EA: Gardner Denver Company is considering the purchase of a new piece of factory equipment that will...
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![A construction company wants to build a 50 housing unit apartment complex and rent them.
It is expected that a 90 % occupancy rate. When you consider below financial data, how much
rent it has to charge per housing unit to guarantee annual %15 income
Land Value 1.000.000 $,
Construction Cost 2.500.000 $,
Annual Maintenance cost 150.000 $,
Real Estate Tax as 5% of total investment cost.
Analysis Period 25 years,
Salvage value is only land value](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faf24e36d-0f02-49db-b940-8c748bdb888a%2Fc5b89329-71f8-45b0-8733-c73445622d6a%2F7s4ozkr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A construction company wants to build a 50 housing unit apartment complex and rent them.
It is expected that a 90 % occupancy rate. When you consider below financial data, how much
rent it has to charge per housing unit to guarantee annual %15 income
Land Value 1.000.000 $,
Construction Cost 2.500.000 $,
Annual Maintenance cost 150.000 $,
Real Estate Tax as 5% of total investment cost.
Analysis Period 25 years,
Salvage value is only land value
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