You purchased a building 5 years ago for P 5M. Its annual maintenance expense has been P 250,000 per year. At the end of three years, you spent P 450,000 on roof repairs. At the end of 5 years (now), you sell the building for P 6M. During the period of ownership, you rented the building for P 500,000 per year paid at the beginning of each year. Use the AW, PW and FW in your solution evaluate this investment when your MARR is 12% per year. Show your complete 1. solution.

You purchased a building 5 years ago for P 5M. Its annual maintenance expense has been P 250,000 per year. At the end of three years, you spent P 450,000 on roof repairs. At the end of 5 years (now), you sell the building for P 6M. During the period of ownership, you rented the building for P 500,000 per year paid at the beginning of each year. Use the AW, PW and FW in your solution evaluate this investment when your MARR is 12% per year. Show your complete 1. solution.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Use annual worth

You purchased a building 5 years ago for P 5M. Its annual
maintenance expense has been P 250,000 per year. At the end of three
years, you spent P 450,000 on roof repairs. At the end of 5 years (now),
you sell the building for P 6M. During the period of ownership, you
rented the building for P 500,000 per year paid at the beginning of each
year. Use the AW, PW and FW in your solution evaluate this
investment when your MARR is 12% per year. Show your complete
1.
solution.

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