10) Assume the following information: I Land investment cost = $2,000,000 1 Building investment cost = $1,000,000 I Annual upkeep cost = $200,000 I Property taxes and insurance = 5% of total initial investment annually 1 Study period = 20 years 1 Salvage value = Only land cost can be recovered in full 1 30 units with average 80% occupancy %3D MARR = 25% Find the required monthly rental charge in order to break even. a) 3760 – 3780 b) 3780 – 3800 c) 3800 – 3820 d) 3820 – 3840 > e) None of the above

10) Assume the following information: I Land investment cost = $2,000,000 1 Building investment cost = $1,000,000 I Annual upkeep cost = $200,000 I Property taxes and insurance = 5% of total initial investment annually 1 Study period = 20 years 1 Salvage value = Only land cost can be recovered in full 1 30 units with average 80% occupancy %3D MARR = 25% Find the required monthly rental charge in order to break even. a) 3760 – 3780 b) 3780 – 3800 c) 3800 – 3820 d) 3820 – 3840 > e) None of the above

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 4CE: Manzer Enterprises is considering two independent investments: A new automated materials handling...

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