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I I Show all values to the nearest Dollar. Excel may be used. but all work/steps must be shown. You can add extra lines where

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I I Show all values to the nearest Dollar. Excel may be used. but all work/steps must be shown. You can add extra lines where needed. Any violation of the Academic Code of Conduct, including using online resources, will result in failing the course. Acme Properties is considering building and renting an office building. The expense are as follows: . Brick: $20,000 0 Steel: $18,000 o Lumber $15,000 I Plumbing: $3,000 0 Electrical: $4,000 0 Other: $5,000 0 Labor: $150,000 0 Monthly Maintenance: $3,000 The building is expected to rent for $3,000/month. MARR is 15% per year. The building is expected to be sold for $200,000 in five yea rs. a) What is the present worth of the building? b) What percentage price increase in lumber would reverse the investment decision if all other expenses (including maintenance) have increased by 10%

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