5-34. The required investment cost of a new, large shopping center is $50 million. The salvage value
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5-34. The required investment cost of a new, large shopping center is $50 million. The salvage value of the project is estimated to be $20 million (the value of the land). The project’s life is 15 years and the annual operating expenses are estimated to be $15 million. The MARR for such projects is 20% per year. What must the minimum annual revenue be to make the shopping center a worthwhile venture? (5.5)
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Engineering Economy
ISBN: 9781292265001
17th Global Edition
Authors: William G. Sullivan ,Elin M. Wicks ,C. Patrick Koelling
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