You are considering building a 25-unit apartment near a Call Center. If you want a return of 25%, will this be a good investment? Other related data are shown below: Land P5,000,000 Building P10,000,000 Study period 25 years Cost of land after 25 years P20,000,000 Cost of building after 25 years P1,000,000 Rent per unit per month P8,000 Maintenance per unit per year P1,000 Property taxes 2% Insurance 1% Use annual-worth method. Determine the value of Total Annual Cost? Will it be worthwhile to invest for the apartment?
You are considering building a 25-unit apartment near a Call Center. If you want a return of 25%, will this be a good investment? Other related data are shown below: Land P5,000,000 Building P10,000,000 Study period 25 years Cost of land after 25 years P20,000,000 Cost of building after 25 years P1,000,000 Rent per unit per month P8,000 Maintenance per unit per year P1,000 Property taxes 2% Insurance 1% Use annual-worth method. Determine the value of Total Annual Cost? Will it be worthwhile to invest for the apartment?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You are considering building a 25-unit apartment near a Call Center. If you want a return of 25%, will this be a good investment? Other related data are shown below:
Land P5,000,000
Building P10,000,000
Study period 25 years
Cost of land after 25 years P20,000,000
Cost of building after 25 years P1,000,000
Rent per unit per month P8,000
Maintenance per unit per year P1,000
Property taxes 2%
Insurance 1%
Use annual-worth method. Determine the value of Total Annual Cost? Will it be worthwhile to invest for the apartment?
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