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Business, 12.11.2019 00:31 Jsanders2276

An investor is considering buying some land for $100,000 and constructing an office building on it. three different buildings are being analyzed. building height 2 stories 5 stories 10 storiesinitial cost (excludes land) $400,000 $800,000 $2,100,000resale value* of land + building after 20-year horizon 200,000 $300,000 $400,000annual net rental income $70,000 $105,000 $256,000resale value considered a reduction in cost not a benefit. using benefit-cost ratio analysis and an 8% marr, determine which alternative, if any, should be selected. a) calculate the b/c ratios of each individual building design. b) conduct an incremental bc analysis. based on your analysis state which alternative should be selected?

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An investor is considering buying some land for $100,000 and constructing an office building on it....

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