What is the non actualised payback period

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A investor wants to build an apartment building of 90 apartments. The MARR is 8%. The construction of the building will last 3 years with distributed cost for a total amount of 9 million $. The land cost 10 million $. The annual maintenance fees will be 5% of the initial investment (construction+land) and it will increases of 5% each year. They want to sell the building after 18 years at a cost of 12 million $.

How much should they charge for the rent each month per unit appartement so that the project would be profitable?

What is the actualised payback period?

What is the non actualised payback period?

Reference no: EM13999893

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