A construction company wants to build a 50 housing unit apartment complex and rent them. It is expected that a 90% occupancy rate. When you consider below financial data, how much rent it has to charge per housing unit to guarantee annual %15 income Land Value 1.000.000 $, Construction Cost 2.500.000 $, Annual Maintenance cost 150.000 $, Real Estate Tax as 5% of total investment cost Analysis Period 25 years, Salvage value is only land value
A construction company wants to build a 50 housing unit apartment complex and rent them. It is expected that a 90% occupancy rate. When you consider below financial data, how much rent it has to charge per housing unit to guarantee annual %15 income Land Value 1.000.000 $, Construction Cost 2.500.000 $, Annual Maintenance cost 150.000 $, Real Estate Tax as 5% of total investment cost Analysis Period 25 years, Salvage value is only land value
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17EB: Caduceus Company is considering the purchase of a new piece of factory equipment that will cost...
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