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For a residential building project, the developer has estimated the capital investment, net rental revenue, and resale value after 6 years for the following
For a residential building project, the developer has estimated the capital investment, net rental revenue, and resale value after 6 years for the following three scenarios. Given the developer's MARR is 8%, what is the estimated B/C ratio of this project? Capital investment $2,039,684 Resale value Net annual benefit 8% n 1 2 3 4 5 6 7 8 9 Single Payment Compound Present Amount Worth Factor Find F Given P F/P 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 Optimistic Factor Find P Given F P/F 9259 8573 7938 7350 6806 6302 5835 5403 5002 $2,584,360 $263,645 Sinking Fund Factor Find A Given F A/F 1.0000 4808 3080 2219 1705 1363 1121 0940 0801 Find A Given P A/P 1.0800 5608 3880 3019 2505 Most Likely 2163 1921 1740 1601 $2,326,982 Compound Interest Factors Uniform Payment Series Capital Recovery Factor $245,561 $2,463,586 $2,347,682 Compound Present Amount Worth Factor Factor Find F Given A F/A 1.000 2.080 3.246 4.506 5.867 7.336 8.923 10.637 12.488 Find P Given A P/A 0.926 1.783 2.577 3.312 3.993 Pessimistic 4.623 5.206 5.747 6.247 $2,735,543 $199,228 Arithmetic Gradient Gradient Present Worth Gradient Uniform Series Find A Given G A/G 0 0.481 0.949 1.404 1.846 2.276 2,694 3.099 3.491 Find P Given G P/G 0 0.857 2.445 4.650 7.372 10.523 14.024 17.806 21.808 1 2 3 4 5 49 6 7 8% n 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Single Payment Compound Amount Factor Find F Given P F/P 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 2.332 2.518 2.720 2.937 3.172 Present Worth Factor Find P Given F P/F 9259 8573 .7938 7350 6806 .6302 5835 5403 5002 4632 4289 3971 3677 3405 3152 Sinking Fund Factor Find A Given F A/F 1.0000 4808 3080 2219 1705 .1363 1121 0940 0801 0690 0601 0527 0465 0413 0368 Compound Interest Factors Uniform Payment Series Capital Recovery Factor Find A Given P A/P 1.080 5608 3880 3019 2505 2163 1921 1740 1601 1490 1401 1327 1265 1213 1168 Compound Amount Factor Find F Given A F/A 1.000 2.080 3.246 4.506 5.867 7.336 8.923 10.637 12.488 14.487 16.645 18.977 21.495 24.215 27.152 Present Worth Factor Find P Given A P/A 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.710 7.139 7.536 7.904 8.244 8.559 Arithmetic Gradient Gradient Gradient Uniform Series Find A Given G A/G 0 0.481 0.949 1.404 1.846 2.276 2.694 3.099 3.491 3.871 4.240 4.596 4.940 5.273 5.594 Present Worth Find P Given G P/G 0 0.857 2.445 4.650 7.372 10.523 14.024 17.806 21.808 25.977 30.266 34.634 39.046 43.472 47.886 8% n 2 3 4 5 6 7 8 9 10 11 12 13 14 15
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