please show work, the question is " If the owners MARR is 5% which design alternative should be selected using the rate of return analysis"
Question 2 (10 points): An owner is considering three different design alternatives (standard, upgrade, premium) for building a rental property. Standard Upgrade Premium Construction cost $550,000 $480,000 $410,000 $7.000 $7.000 $6,000 Annual maintenance cost $25,000 $28,000 $31,000 Annual rental revenue $550,000 $600,000 Resale value after 10 years $480,000 If the owner's MARR is 5%, which design alternative should be selected using the rate-of-return analysis over a 10-year analysis period? 5% ne aterorrel 59 596 PAF 1 1 2 3 4 5 3 6 7 8 9 10 6 7 8 9 10 11 12 13 14 15 12 13 15 16 17 18 19 20 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Single Payment Compound Present Amount Worth Factor Factor Find F Find P Given P Given F F/P 1.050 9524 1.102 .9070 1.158 8638 1.216 8227 1.276 7835 1.340 .7462 1.407 .7107 1.477 .6768 1.551 6446 1.629 .6139 1.710 5847 1.796 5568 1.886 5303 1.980 5051 2.079 4810 2.183 .4581 2.292 4363 2.407 .4155 2.527 .3957 2.653 3769 2.786 3589 2.925 3419 3.072 3256 3.225 .3101 3.386 2953 3.556 2812 3.733 2678 3.920 2551 4.116 4.322 2314 4.538 2204 4.765 2099 5.003 .1999 5.253 .1904 5.516 .1813 7.040 1420 8.985 1113 11,467 0872 14.636 .0683 18.679 23.840 .0419 30.426 .0329 38.832 0258 49.561 63.254 .0158 80.730 0124 103.034 .00971 131.500 .00760 Sinking Fund Factor Find A Given A/F 1.0000 .4878 3172 2320 .1810 .1470 1228 1047 0907 ,0795 0704 .0628 0565 0510 0463 0423 .0387 0355 0327 0302 .0280 0260 0241 .0225 0210 0196 .0183 0171 20160 0151 20141 0133 0125 0118 0111 .00828 00626 00478 .00367 .00283 .00219 00170 .00132 00103 .00080 .00063 .00049 .00038 Compound Interest Factors Uniform Payment Series Capital Compound Recovery Amount Factor Factor Find A Find F Given P Given A A/P F/A 1.0500 1.000 5378 2.050 .3672 3.152 2820 4310 2310 5.526 .1970 6.802 .1728 8.142 1547 9.549 .1407 11.027 .1295 12578 1204 14.207 .1128 15.917 1065 17.713 .1010 19.599 0963 21.579 0923 23.657 0887 25.840 ORS5 28.132 0827 30.539 0802 33,066 0780 35.719 .0760 38.505 0741 41.430 0725 44.502 .0710 47.727 0696 S1113 0683 54.669 0671 58.402 90660 62.323 0651 66.439 0641 70.761 0633 75.299 .0625 80.063 0618 89.067 .0611 90.320 0583 120.799 .0563 159.699 0548 209.347 0537 272.711 0528 353.582 0522 456.795 0517 588.525 0513 756.649 0510 971.222 0508 1245.1 0506 1594.6 LOSOS 2010.7 0504 260 Present Worth Factor Find P Given A P/A 0.952 1.859 2.723 3.546 4329 5.076 5.786 6.463 7.108 7.722 8.306 8.863 9.394 9.899 10.380 10.838 11.274 11.690 12 ORS 12.462 12.821 13.163 13.489 13.799 14.094 14.375 14.643 14.898 15.141 15.372 15.593 15.803 16.003 16.193 16.374 17.159 17.774 18.256 18.633 18.929 19.161 19.343 19.485 19.596 19.684 19.752 19.806 19.848 Arithmetic Gradient Gradient Gradient Uniform Present Series Worth Find A Find P Given G Given G A/G P/G 0 0 0.488 0.907 0.967 2.635 1.439 5.100 1.902 8237 2.358 11.968 2.805 16.232 3.244 20.970 3.676 26.127 4.099 31.652 4.514 37.499 4.922 43.624 5.321 49.988 5.713 56.553 6.097 63.288 6.474 70.159 6.842 77.140 7.203 84.204 7.557 91.327 7.903 98.488 8.242 105.667 8573 112.846 8.897 120.008 9.214 127.140 9.524 134.227 9.827 141.258 10.122 148.222 10.411 155.110 10.694 161.912 10.969 168.622 11.238 175.233 11.501 181.739 11.757 188.135 12.006 194.416 12.250 200.580 13.377 229.545 14.364 255.314 15.223 277.914 15.966 297.510 16.606 314.343 17.154 328.691 17,621 340.841 18.018 351.072 18.353 359.646 18635 366.800 18.871 372.749 19.069 377.677 19. 234 381.749 23 24 25 26 27 28 29 30 31 32 33 24 35 .2429 40 45 33 34 35 40 45 50 55 60 55 .0535 65 70 75 80 85 65 70 75 80 85 0202 90 95 100 90 95 100
