=9-16 The B. Hall Real Estate Investment Corporation has identified four small apartment buildings in which it

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=9-16 The B. Hall Real Estate Investment Corporation has identified four small apartment buildings in which it would like to invest. Mrs. Hall has approached three savings and loan companies regarding financing.

Because Hall has been a good client in the past and has maintained a high credit rating in the community, each savings and loan company is willing to consider providing all or part of the mortgage loan needed on each property. Each loan officer has set differing interest rates on each property (rates are affected by the neighborhood of the apartment building, condition of the property, and desire by the individual savings and loan to finance various-size buildings), and each loan company has placed a maximum credit ceiling on how much it will lend Hall in total. This information is summarized in the table on the previous page.
Each apartment building is equally attractive as an investment to Hall, so she has decided to purchase all buildings possible at the lowest total payment of interest. From which savings and loan companies should she borrow to purchase which buildings?
More than one savings and loan can finance the same property.

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Quantitative Analysis For Management

ISBN: 9789332578692

12th Edition

Authors: Barry Render, Ralph M. Stair, Michael E. Hanna

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