Question
In Japan, the total cost of the construction a new building is RM200 million. The annual benefit accrues based on the departmental basis: RM20 million
In Japan, the total cost of the construction a new building is RM200 million. The annual benefit accrues based on the departmental basis: RM20 million in store department, RM 30 million in office department and RM 50 million in recreation department. The life span for this project will last at 150 years as store department recorded half from the life span, office department half from store department and the balance goes to recreation department. For this situation, the calculation accrues at the end of the first year and by using the above information for prediction, what are the net benefits of the new building if the real discount rate is 10 percent?
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