Consider your self as a businessman, you owned 5 storey building with a total of 35-unit apartment near at the downtown area of Davao City. You felt that because the location of the apartment will be occupied 95% at all time. You desires a rate of return 30%. Other pertinent data are the following: Land investment - 8,000,000.00 Building investment - 20,000,000.00 Study period - 30 yrs Cost of the land after 30 yrs - 25,000,000.00 Cost of the building after 30 yrs - 5,000,000.00 Rent per unit per month - 7,500.00 Upkeep per unit per year - 1,500.00 Property Taxes - 1% Insurance - 0.5% Is this a good investment? And what is the Payback period of investment? Note: use all the method.
Consider your self as a businessman, you owned 5 storey building with a total of 35-unit apartment near at the downtown area of Davao City. You felt that because the location of the apartment will be occupied 95% at all time. You desires a rate of return 30%. Other pertinent data are the following: Land investment - 8,000,000.00 Building investment - 20,000,000.00 Study period - 30 yrs Cost of the land after 30 yrs - 25,000,000.00 Cost of the building after 30 yrs - 5,000,000.00 Rent per unit per month - 7,500.00 Upkeep per unit per year - 1,500.00 Property Taxes - 1% Insurance - 0.5% Is this a good investment? And what is the Payback period of investment? Note: use all the method.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider your self as a businessman, you owned 5 storey building with a total of 35-unit apartment near at the downtown area of Davao City. You felt that because the location of the apartment will be occupied 95% at all time. You desires a
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