A young engineer is considering to built a 1 unit apartment near a commercial center. Because of the location, the investment can guarantee a 90% occupancy rate. So then, he projects an earning of 20% annually. Other data are the following: Land P10M Building cost Projected Useful life Cost of land after 20 years Cost of Building after 20 years Rent/unit/month 14M 20 years 38M 3.8M 15,000.00 Maintenance/unit/year Property Taxes Building Insurance 2,200.00 1% 0.7%

A young engineer is considering to built a 1 unit apartment near a commercial center. Because of the location, the investment can guarantee a 90% occupancy rate. So then, he projects an earning of 20% annually. Other data are the following: Land P10M Building cost Projected Useful life Cost of land after 20 years Cost of Building after 20 years Rent/unit/month 14M 20 years 38M 3.8M 15,000.00 Maintenance/unit/year Property Taxes Building Insurance 2,200.00 1% 0.7%

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

5th Edition

ISBN:9781305084766

Author:Saeed Moaveni

Publisher:Saeed Moaveni

Chapter20: Engineering Economics

Section: Chapter Questions

Problem 19P

See similar textbooks

Similar questions

•1 You are planning to build a new home with approximately 2,000–2,500 gross square feet of living space on one floor. In addition, you are planning an attached two-car garage (with storage space) of approximately 450 gross square feet. Develop a cost and revenue structure for designing and constructing, operating (occupying) for 10 years, and then selling the home at the end of the 10th year. 176
3) For the construction of the final stage of a university laboratory building, the site engineer decided to purchase 12 beams whose value (in dollars) varies according to the length of the beam. In the last quote received by the engineer is the unit cost that the 12 beams would have, it is as follows: 2500 2600 2550 2480 2560 2570 2490 2490 2530 2510 2490 2410 a. The lot purchase criteria establishes that it should be acquired if its average cost does not belong to the cheapest 10% of lots or to the most expensive 10% of lots that have been purchased for the construction of the entire building. If it is known that the beams that have been purchased throughout the project have had a normally distributed cost with an average of $2,540, what should the engineer's decision be and why? b. What must be the minimum and maximum average costs of the lot so that it can be purchased?
Avallable Allowed Attempts 1 A company that sells computers has proposed to a small public utility company that it purchase a small electronic computer for P1,000,000 to replace ten calculating machines and their operators. An annual service maintenance contract for the computer will be provided at a cost of P100,000 per year. One operator will be required at a salary of P96,000 per year and one programmer at a salary of P144,000 per year. The expected economical life of the computer is 10 years. The calculating machine costs P7,000 each when new, 5 years ago, and presently can be sold for P2,000 each. They have an estimated life of 8 years and an expected ultimate trade-in value of P1,000 each. Each calculating machine operator receives P84,000 per year. Fringe benefits for all labor cost 8% of annual salary. Annual maintenance costs on the calculating machines have been P500 each. Taxes and insurance on all equipment is 2% of the first cost per year. If the capital costs the company…
Given four proposals for funding a new project with a 100M limit on capital funding and the MARR is established at 12% per year. Project First Cost Estimated Annual Savings Project Life, Years W 12M 5M 25M 7.3M Y 45M 12.1M 60M 9M 8 Use the exact internal rate of return method to determine which of the four independent projects should be funded. Write the value of the acceptable project accordingly/in sequence (W/X/Y/Z). ANSWER for ALTERNATIVE 1: Blank 1 ANSWER for ALTERNATIVE 2: Blank 2 Blank 1 Add your answer Blank 2 Add your answer
In January of 2018, the appropriate construction cost index had a value of $4,260. In January of 2005, the value was $2,746. In January 2010 you received a bid for a structure of 7.25 million. Another building (virtually identical) is planned for a bid opening in January 2020. Estimate the new building bid. 11.25 million 12.03 million 10.61 million
2) The Company purchased a lot for P250k on which they will construct a building with 3 estimates tabulated below. Determine which alterative should be selected using Benefit Cost Analysis at 10%: Building Height 4 stories 8 stories 12 stories Cost of Building P650k P1.5M P2.4M Resale Value at the end of 30 350k 720k 1M yrs Net Annual Income 120k 250k 340k
The owner of the construction company makes use of the estimate: O To assist in financial arrangements To determine economic feasibility of the project To determine the capital investment costs O All of the choices O To plan for the project
Use time and location indices given is the table to prepare the conceptual cost estimate of a building with 62700 m² of floor area and location is city B. A similar type of building that cost Rs. 21,97,540 of area 38500 m² completed 2 years ago in city E. Estimate the probable cost of proposed buildings. Year construction 3 years ago years ago 1 year ago Current year Cost (million) 358 359 362 378 Cost index For city B = 1.24 E = 1.17
Pls. answer ASAP. Provide complete solution. I'll rate , thanks
A developer is building a 60-unit apartment building. Construction will take 15 months covering all of Year 0 and the first 3 months of Year 1. Tenants will begin moving in the first day of Month 4. Lease up is expected to occur at a rate of 10 units per month until reaching full (100%) occupancy (e.g., 10 units occupied in Month 4, 20 units occupied in Month 5, etc.) What forecasted vacancy rate (average vacancy for the year) should be used for Year 1 in the pro forma? Assume 100% occupancy once fully leased up. (CAUTION: The question asks for the VACANCY percent, NOT occupancy percent.) (%)
The cost of building usually includes all of the following excepta. any renovating or remodeling cost incurred to put the building purchased in a condition for its intended useb. cost of excavationc. expenditure for service equipment and fixture made as permanent part of the structured. cost incurred to have existing building removed to make room for construction of new building
As a rental for a building, the owner received two offer: a) 50,000 a year for 80 years, the rental for each year being paid at the start of each year. b) 30,000 the first year, 40,000 second year, 50,000 the third year, and 60,000 for the next 5 years with all rentals paid at the beginning of each year. If money is worth 12%, which is better offer?