12. Use the following information and the information in Table 4.6 to evaluate a project involving remodeling a brick apartment building. The project includes repairing and replacing equipment as necessary. The apartment building is twelve stories tall, has 125 apartment units, and is twenty-five years old. The goal is to keep the building viable in the marketplace, expend the $350,000, and get the most benefit for the money from a maintenance and marketing stand- point. Inspection of the building exterior has indicated areas of loose mortar between some brick joints. The apartments are cooled by window air-conditioning units, and each apartment has two air-conditioning units. Half of the air-conditioning units were replaced twelve years ago. Bathrooms are showing their age. The bathrooms consist of a combination tub and shower, vanity, mirror cabinet, and toilet. Heating is hydronic and is provided by a pair of fire tube boil- ers. Elevators are serviceable, but they are running slow and could benefit from a system upgrade. Each unit has six windows and they are serviceable, but they show signs of their age as well. There are twenty vacant apartments in the building. Other than replacement of one air condi- tioner in each, none has had any work done since the apartment was built. Carpeting is changed only when an apartment is vacant. TABLE 4.6 Replacement, Upgrade, and Repair Costs versus Equipment Useful Life for an Apartment Renovation Project Item Window air conditioner Hydronic boiler Replacement Cost (Including Installation) $ 325 $135,000 Windows Toilet Vanity/lavatory Mirror Tub/shower $ $ $ $ $ 350 300 700 200 1,200 Cost to Upgrade or Repair* Useful Life NA 15 years $50,000 (replace burners 30 years with energy-efficient units) NA 15 years NA 28 years NA 20 years NA 20 years $500 (recoat interior of tub; 25 years life of recoat = 10 years) 25 years $ 800 NA Bathroom floor and interior finish Carpeting Building exterior $ 1,250 Tuck point mortar joints $150,000 (total building tuck pointing) NA $45,000 (repair) 10 years 35 years *NA = not applicable. Develop a plan to utilize the budgeted funds efficiently. Provide a rationale for your choices and present the information in the form of a spreadsheet. Note that it is important to consider the useful life of the equipment discussed. Assume that any apartment/building items not mentioned are in very good condition. What items would you complete? Explain. How much money should be budgeted for the fol- lowing year to complete the work? 12. Use the following information and the information in Table 4.6 to evaluate a project involving remodeling a brick apartment building. The project includes repairing and replacing equipment as necessary. The apartment building is twelve stories tall, has 125 apartment units, and is twenty-five years old. The goal is to keep the building viable in the marketplace, expend the $350,000, and get the most benefit for the money from a maintenance and marketing stand- point. Inspection of the building exterior has indicated areas of loose mortar between some brick joints. The apartments are cooled by window air-conditioning units, and each apartment has two air-conditioning units. Half of the air-conditioning units were replaced twelve years ago. Bathrooms are showing their age. The bathrooms consist of a combination tub and shower, vanity, mirror cabinet, and toilet. Heating is hydronic and is provided by a pair of fire tube boil- ers. Elevators are serviceable, but they are running slow and could benefit from a system upgrade. Each unit has six windows and they are serviceable, but they show signs of their age as well. There are twenty vacant apartments in the building. Other than replacement of one air condi- tioner in each, none has had any work done since the apartment was built. Carpeting is changed only when an apartment is vacant. TABLE 4.6 Replacement, Upgrade, and Repair Costs versus Equipment Useful Life for an Apartment Renovation Project Item Window air conditioner Hydronic boiler Replacement Cost (Including Installation) $ 325 $135,000 Windows Toilet Vanity/lavatory Mirror Tub/shower $ $ $ $ $ 350 300 700 200 1,200 Cost to Upgrade or Repair* Useful Life NA 15 years $50,000 (replace burners 30 years with energy-efficient units) NA 15 years NA 28 years NA 20 years NA 20 years $500 (recoat interior of tub; 25 years life of recoat = 10 years) 25 years $ 800 NA Bathroom floor and interior finish Carpeting Building exterior $ 1,250 Tuck point mortar joints $150,000 (total building tuck pointing) NA $45,000 (repair) 10 years 35 years *NA = not applicable. Develop a plan to utilize the budgeted funds efficiently. Provide a rationale for your choices and present the information in the form of a spreadsheet. Note that it is important to consider the useful life of the equipment discussed. Assume that any apartment/building items not mentioned are in very good condition. What items would you complete? Explain. How much money should be budgeted for the fol- lowing year to complete the work