Question
GENERAL INSTRUCTIONS: ENTER YOUR ANSWER WITHOUT THE $ SIGN AND COMMA, BUT FORMATTED IN DOLLARS ROUNDED TO THE NEAREST DOLLAR, for instance if you compute
GENERAL INSTRUCTIONS: ENTER YOUR ANSWER WITHOUT THE $ SIGN AND COMMA, BUT FORMATTED IN DOLLARS ROUNDED TO THE NEAREST DOLLAR, for instance if you compute -$77,342.6478 then ENTER -77343 AS YOUR ANSWER. DO NOT ROUND IN YOUR CALCULATION STEPS (use calculator memory functions) TO AVOID ROUNDING ERRORS. There is a little bit of tolerance built into accepting/rejecting your answer, but if you round in your intermediate calculations you may be too far off. Bronson Building Inc. is considering a possible investment project, consisting of constructing an office building and then renting it out for use to various local businesses. The initial cost of acquiring the land and constructing the building (first cost) is $18,000,000. The building is expected to be sold for $10,000,000 in 28 years, at the end of the last year of the project. Annual revenue from collecting rents is expected to be $4,000,000, while annual maintenance and operating expenses are projected to equal $1,000,000. Using MARR of 5%, compute the present worth of the project. Note: if the present worth is negative you must include the negative sign with your answer.
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