Manny Billard Real Estate Company has PHP 2 million available for the purchase of new rental property. After an initial screening, Billard reduced the investment alternatives to townhouses and apartment buildings. Each townhouse can be purchased for PHP 282,000, and five are available. Each apartment building can be purchased for PHP 400,000, and the developer will construct as many buildings as Billard wants to purchase. Billard property manager can devote up to 140 hours per month to these new properties; each townhouse is expected to require 4 hours per month, and each apartment building is expected to require 40 hours per month. The annual cash flow, after deducting mortgage payments and operating expenses, is estimated to be PHP10,000 per townhouse and PHP15,000 per apartment building. How many townhouses would have left (unpurchased) if Billard will go for the optimal solution?
Manny Billard Real Estate Company has PHP 2 million available for the purchase of new rental property. After an initial screening, Billard reduced the investment alternatives to townhouses and apartment buildings. Each townhouse can be purchased for PHP 282,000, and five are available. Each apartment building can be purchased for PHP 400,000, and the developer will construct as many buildings as Billard wants to purchase.
Billard property manager can devote up to 140 hours per month to these new properties; each townhouse is expected to require 4 hours per month, and each apartment building is expected to require 40 hours per month. The annual cash flow, after deducting mortgage payments and operating expenses, is estimated to be PHP10,000 per townhouse and PHP15,000 per apartment building.
How many townhouses would have left (unpurchased) if Billard will go for the optimal solution?
Step by step
Solved in 3 steps
