Question
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
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. Bill Samuels, a newly hired civil engineer, has been assigned to make the analysis. He has assembled the following data:*Includes the value of the land.The analysis period is to 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 investment. If the MARR is 10%, what recommendation should Bill make?
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