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SAP ID 2924 Q3 (CLO 1) House can be purchased for PKR 60,000,00 for rental purpose. Annual net income is PKR SAP D X 100

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SAP ID 2924

Q3 (CLO 1) House can be purchased for PKR 60,000,00 for rental purpose. Annual net income is PKR SAP D X 100 per year for 10 years. At the end of years, the house should be restored according to provincial law. The cost of reclamation will be PKR 125,000,00 The interest rate is 8%. Is the project acceptable? (10 marks)

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