You purchased a warehouse 8 years ago for P 3.5M. Since then you had rented it out for P 240 000 per year, incurring P 55 000 per year for repairs and maintenance. Five years ago you spent P 250 000 for roof replacement and you increased the annual rent to P 300 000 the succeeding year. if you decide to sell the warehouse for P 5.4M to a willing buyer now, ebaluate your investment using future worth analysis and a 12.5% rate of return. A. +1 328 417.25 B. -1 328 417.25

You purchased a warehouse 8 years ago for P 3.5M. Since then you had rented it out for P 240 000 per year, incurring P 55 000 per year for repairs and maintenance. Five years ago you spent P 250 000 for roof replacement and you increased the annual rent to P 300 000 the succeeding year. if you decide to sell the warehouse for P 5.4M to a willing buyer now, ebaluate your investment using future worth analysis and a 12.5% rate of return. A. +1 328 417.25 B. -1 328 417.25

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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