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solve Question 5 step by step using respective formula of Engineering economic on page FM! 05[ like is constructing a mall near industrial estate. The

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solve Question 5 step by step using respective formula of Engineering economic on page

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FM! 05[ like is constructing a mall near industrial estate. The initial investment includes land m $400,000. working capital 3560.000. building costs $600,000 and other materials wquired costs $250,000. It is expected that the sales of the mall will reach up to 037.504!\" per year for 12 years at which time the land can be sold for $500,000. the bunldmg for $350,000, the materials for 550.000 and all the working capital will be recovered (Hill: Salvage values). The annual expenses for labor and other items will sum up to $475,000 per year. If the company requires an MARK of 9% on return, detennine if it should invest in this mall? Use AW method to support your argument

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