Should be recommended to the city council

Reference no: EM131506992

Question: A city is considering buying a piece of land for $500,000 and constructing an office complex on it. Their planning horizon is 20 years. Three mutually exclusive building designs (shown below) have been drawn up by an architectural firm. Use the modified benefit-cost ratio method and a MARR of 10% per year to determine which alternative, if any, should be recommended to the city council.

Design A Design B Design C

Cost of the building, including cost of the land $1,300,000 $1,700,000 $3,500,000

Resale value of land and building at end of 20-year planning horizon $500,000 $900,000 $2,000,000

Annual net rental income (after deducting all operating expenses) $120,000 $300,000 $450,000

Reference no: EM131506992

Questions Cloud

Demonstrate knowledge of systems analysis : This assignment will give you the opportunity to demonstrate your knowledge of systems analysis, the meaning and purpose of attributes included in a data model.

Questions about the collect requirements process : Answer the following questions about the Collect Requirements process.

Should the toll bridge be constructed : A toll bridge across the Mississippi River is being considered as a replacement for the current I-40 bridge linking Tennessee to Arkansas.

Charts and conditional formatting : Explain what you believe to be the main business purpose of charts in Excel. Next, discuss whether or not you believe Excel would still be a useful tool.

Should be recommended to the city council : A city is considering buying a piece of land for $500,000 and constructing an office complex on it. Their planning horizon is 20 years.

Example on one of the following attacks : Research and discuss a recent example on one of the following attacks: brute-force, buffer overflow, content spoofing, credential/session prediction.

statements balancing on the FSAP : Having trouble with the 2015 and 2016 statements balancing on the FSAP. Could you take a look at it and tell what is wrong and correct it

User to enter the name of the file : Write code in the Form_Load event handler that allows the user to enter the name of the file.

What are we talking about when we talk about theory : Considering the article and also your text readings, explain the role that theory plays in the research process.

User Account

All Pages