apartment it will be occupied 90% at all times. He desires an MARR of 20%. Other pertinent data are the following: Building investment $5,000,000 Rent per unit per month 6,000 Maintenance per unit per year 500 Property taxes 1% of investment Insurance 0.50% of investment Cost of building after 20 years 2,000,000 Study period 20 years a. What is the rate of return of the investment? Write the answer in percentage value, up to 2 decimal places. b. How much is the excess of the investment's cash flow? Roundoff answer to the whole number.

apartment it will be occupied 90% at all times. He desires an MARR of 20%. Other pertinent data are the following: Building investment $5,000,000 Rent per unit per month 6,000 Maintenance per unit per year 500 Property taxes 1% of investment Insurance 0.50% of investment Cost of building after 20 years 2,000,000 Study period 20 years a. What is the rate of return of the investment? Write the answer in percentage value, up to 2 decimal places. b. How much is the excess of the investment's cash flow? Roundoff answer to the whole number.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...

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