Solve without excel 8-33 The owner of a downtown parking lot has employeda civil engineering consulting firm to advise himon the economic feasibility of constructing anoffice building on the site. Betty Samuels, a newlyhired civil engineer, has been assigned to make theanalysis. She has assembled the following data:TotalNet AnnualTotalAlternativeInvestment*Revenue$200,000$Sell parking lotKeep parking lotBuild 1-story building22,000400,00060,000Build 2-story building555,00072,000Build 3-story building750,000100,000Build 4-story building875,000105,000Build 5-story building1,000,000120,000* Includes the value of the land.The analysis period is to be 15 years. For allalternatives, the property has an estimated resale(salvage) value at the end of 15 years equal to thepresent total investment.(a) Construct a choice table for interest rates from0% to 100%.(b) If the MARR is 10%, what recommendationshould Betty make?

8-33 The owner of a downtown parking lot has employed a civil engineering consulting firm to advise him on the economic feasibility of constructing an office building on the site. Betty Samuels, a newly hired civil engineer, has been assigned to make the analysis. She has assembled the following data: Total Net Annual Total Investment* Alternative Revenue Sell parking lot Keep parking lot $ $ 200,000 22,000 Build 1-story building 400,000 60,000 Build 2-story building Build 3-story building 555,000 72,000 750,000 100,000 Build 4-story building 875,000 105,000 Build 5-story building 1,000,000 120,000 * Includes the value of the land. The analysis period is to be 15 years. For all alternatives, the property has an estimated resale (salvage) value at the end of 15 years equal to the present total investment. (a) Construct a choice table for interest rates from 0% to 100%. (b) If the MARR is 10%, what recommendation should Betty make?

8-33 The owner of a downtown parking lot has employed a civil engineering consulting firm to advise him on the economic feasibility of constructing an office building on the site. Betty Samuels, a newly hired civil engineer, has been assigned to make the analysis. She has assembled the following data: Total Net Annual Total Investment* Alternative Revenue Sell parking lot Keep parking lot $ $ 200,000 22,000 Build 1-story building 400,000 60,000 Build 2-story building Build 3-story building 555,000 72,000 750,000 100,000 Build 4-story building 875,000 105,000 Build 5-story building 1,000,000 120,000 * Includes the value of the land. The analysis period is to be 15 years. For all alternatives, the property has an estimated resale (salvage) value at the end of 15 years equal to the present total investment. (a) Construct a choice table for interest rates from 0% to 100%. (b) If the MARR is 10%, what recommendation should Betty make?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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