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A city is considering buying a piece of land for MYR 1,500,000 and custruction an office complex on it. Their planning horizon 20 years. Three
A city is considering buying a piece of land for MYR 1,500,000 and custruction an office complex on it. Their planning horizon 20 years. Three mutually exclusive building designs (shown below) have been drawn up by an architectural firm. Use the B-C cost ratio method and incremental analysis to recommend the best alternative to the city council. Design A Design B Design C 3900000 5100000 10500000 Cost of the building, including cost of the land (MYR) Resale value of land and building after 20 years (MYR) Annual net rental income (after deducing operational cost) (MYR) 1500000 2700000 6000000 360000 900000 1350000 A city is considering buying a piece of land for MYR 1,500,000 and custruction an office complex on it. Their planning horizon 20 years. Three mutually exclusive building designs (shown below) have been drawn up by an architectural firm. Use the B-C cost ratio method and incremental analysis to recommend the best alternative to the city council. Design A Design B Design C 3900000 5100000 10500000 Cost of the building, including cost of the land (MYR) Resale value of land and building after 20 years (MYR) Annual net rental income (after deducing operational cost) (MYR) 1500000 2700000 6000000 360000 900000 1350000
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