19. Mr Arguillonis considering building a 25-unit apartment in a place near a progressive commercial center. He felt that because of the location of the apartment, it will be occupied 90% at all time. He desires a rate of return of 20%. Other pertinent data are the following: Land investment Building investment Study period Cost of land after 20 years Rent per unit per month Upkeep per unit per year Property taxes Insurance P 5,000,000 7,000,000 20 years 2,000,000 6,000 500 1% 0.50% W& Is this a good investment?

19. Mr Arguillonis considering building a 25-unit apartment in a place near a progressive commercial center. He felt that because of the location of the apartment, it will be occupied 90% at all time. He desires a rate of return of 20%. Other pertinent data are the following: Land investment Building investment Study period Cost of land after 20 years Rent per unit per month Upkeep per unit per year Property taxes Insurance P 5,000,000 7,000,000 20 years 2,000,000 6,000 500 1% 0.50% W& Is this a good investment?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: The Basic Tools Of Finance

Section: Chapter Questions

Problem 3CQQ

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