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
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Five years ago a consulting engineer purchased a building for company offices constructed of bricks
that were not properly fired. As a result, some of the bricks were deteriorated. Because of the problem
with the bricks, the selling price of the building was 25% below the price of structurally sound
buildings. 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
the 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%
per year?
O a. P256128
O b. P258125
C. P257128
O d. P255124
Transcribed Image Text:Five years ago a consulting engineer purchased a building for company offices constructed of bricks that were not properly fired. As a result, some of the bricks were deteriorated. Because of the problem with the bricks, the selling price of the building was 25% below the price of structurally sound buildings. 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 the 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% per year? O a. P256128 O b. P258125 C. P257128 O d. P255124
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