A young engineer is considering to built a 1 unit apartment near a commercial center.Because of the location, the investment can guarantee a 90% occupancy rate. So then, heprojects an earning of 20% annually. Other data are the following:LandP10MBuilding cost14MProjected Useful lifeCost of land after 20 yearsCost of Building after 20 yearsRent/unit/month20 years38M3.8M15,000.00Maintenance/unit/yearProperty TaxesBuilding Insurance2,200.001%0.7%Is this a good investment? Apply the methods of economic studies.

The present value technique would be good for the analysis of an investment. The investment with…

A young engineer is considering to built a 1 unit apartment near a commercial center. Because of the location, the investment can guarantee a 90% occupancy rate. So then, he projects an earning of 20% annually. Other data are the following: Land P10M Building cost Projected Useful life Cost of land after 20 years Cost of Building after 20 years Rent/unit/month 14M 20 years 38M 3.8M 15,000.00 Maintenance/unit/year Property Taxes Building Insurance 2,200.00 1% 0.7% Is this a good investment? Apply the methods of economic studies.

A young engineer is considering to built a 1 unit apartment near a commercial center. Because of the location, the investment can guarantee a 90% occupancy rate. So then, he projects an earning of 20% annually. Other data are the following: Land P10M Building cost Projected Useful life Cost of land after 20 years Cost of Building after 20 years Rent/unit/month 14M 20 years 38M 3.8M 15,000.00 Maintenance/unit/year Property Taxes Building Insurance 2,200.00 1% 0.7% Is this a good investment? Apply the methods of economic studies.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5EA: If a garden center is considering the purchase of a new tractor with an initial investment cost of...

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