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4. An investor is considering buying some land for $100,000 and constructing an office building on it. Three different buildings are being analyzed. Building Heights

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4. An investor is considering buying some land for $100,000 and constructing an office building on it. Three different buildings are being analyzed. Building Heights 2 stories5 stories Cost of building excluding cost of land $400K $800K 10 stories $2.1M Resale value of land + building after 20-year horizon $200K $300K $400K Annual net rental income Resale value considered a reduction in cost-not a benefit. $70K S105K $265K Using incremental benefit/cost ratio analysis and an 10% MARR, determine which alternative, if any, should be selected

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