Five years ago a consulting engineer purchased a building for company offices constructed of bricks hat were not properly fired. As a result, some of the bricks were deteriorated. Because of the problem vith the bricks, the selling price of the building was 25% below the price of structurally sound puildings. The engineer repaired the damaged bricks and arrested further deterioration by applying an extra-strength solvent-based sealant. This resulted in restoring the building to its fair market value. If he depressed purchase price of the building was Php 600,000 and the cost of getting it repaired was Php 25,000, what is the equivalent value of the "forced appreciation" today, if the interest rate is 8% mer year? O a. P256128 O b. P258125 O c. P257128 O d. P255124

Five years ago a consulting engineer purchased a building for company offices constructed of bricks hat were not properly fired. As a result, some of the bricks were deteriorated. Because of the problem vith the bricks, the selling price of the building was 25% below the price of structurally sound puildings. The engineer repaired the damaged bricks and arrested further deterioration by applying an extra-strength solvent-based sealant. This resulted in restoring the building to its fair market value. If he depressed purchase price of the building was Php 600,000 and the cost of getting it repaired was Php 25,000, what is the equivalent value of the "forced appreciation" today, if the interest rate is 8% mer year? O a. P256128 O b. P258125 O c. P257128 O d. P255124

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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