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Based on the following information, what type of office building will be built at the location 4 blocks away from CBD? Price of office space
Based on the following information, what type of office building will be built at the location 4 blocks away from CBD?
- Price of office space is $600/ hectare
- Nonland cost is $200
- Travel cost is $46 for 1st block ; $41 for an additional block.
A. Medium
B. Tall
C. Not Profitable to build
\begin{tabular}{|l|l|l|l|} \hline & \multicolumn{3}{|c|}{ Office Building Type } \\ \hline \begin{tabular}{l} Location and Bid \\ Rent \end{tabular} & Tall & Medium & Short \\ \hline Land (hectares) & 0.04 & 0.25 & 1 \\ \hline Floors & 25 & 4 & 1 \\ \hline Capital cost & 250 & 100 & 50 \\ \hline \end{tabular}Step by Step Solution
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