the owner of a downtown parking lot has employed a civil engineering consulting firm to advise him on the economic feasibility of constructing an office building on the site. Betty samuels, a newly hired civil engineer, has been assigned to make the analysis. he has assembled the following data

alternative total investment total net annual revenue sell parking lot 0 0 keep parking lot 200,000 22,000 build 1 story building 400,000 60,000 build 2 story building 555,000 72,000 build 3 story building 750,000 100,000 build 4 story building 875,000 105,000 build 5 story building 1,000,000 120,000

The analysis period is be 15 years. for all alternatives, the property has an estimated resale(salvage) value at the end of 15 years equal to the present total investement.

(a) constuct a choice table for interest rate from 0% to 100%

(b)if the MARRR is 10%, what recommendation should betty make?

(c)discuss the approach

(d)how you determined the solution to this investment decision

(e)what conclusions you reached

(f) write a brief summary of the calculations