The problemA young engineer is considering to built a 25unit apartment near a commercial center.Because of the location, the investment can guarantee a 90% occupancy rate. So then, theproject can have an earnings of 20% annually. Other data are the following:LandP10MBuilding costProjected Useful lifeCost of land after 20 yearsCost of Building after 20 yearsRent/unit/month14M20 years38M3.8M13,000.00Maintenance/unit/yearProperty TaxesBuilding Insurance2,200.002%0.7%Is this a good investment? Apply the methods of economic studies.

Annual Income: Rental ( ₱13,000 per month × 12 × 25 × 0.90)…

The problem A young engineer is considering to built a 25unit apartment near a commercial center. Because of the location, the investment can guarantee a 90% occupancy rate. So then, the project can have an earnings of 20% annually. Other data are the following: Land Building cost Projected Useful life Cost of land after 20 years Cost of Building after 20 years Rent/unit/month P10M 14M 20 years 38M 3.8M 13,000.00 Maintenance/unit/year Property Taxes Building Insurance 2,200.00 2% 0.7% Is this a good investment? Apply the methods of economic studies.

The problem A young engineer is considering to built a 25unit apartment near a commercial center. Because of the location, the investment can guarantee a 90% occupancy rate. So then, the project can have an earnings of 20% annually. Other data are the following: Land Building cost Projected Useful life Cost of land after 20 years Cost of Building after 20 years Rent/unit/month P10M 14M 20 years 38M 3.8M 13,000.00 Maintenance/unit/year Property Taxes Building Insurance 2,200.00 2% 0.7% Is this a good investment? Apply the methods of economic studies.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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