Question
Total direct cost to construct a single-family residence is $75,000. Indirect costs are estimated at 10% of direct costs. Land value in the subdivision is
Total direct cost to construct a single-family residence is $75,000. Indirect costs are estimated at 10% of direct costs. Land value in the subdivision is well-supported at $15,000. Entrepreneurial profit is supported throughout the market at 15% of the sum of direct costs, indirect costs, and land value.
What is the estimated cost new to the subject improvement?
| A. | $112,125 | |
| B. | $97,125 | |
| C. | $94,875 | |
| D. | $109,875 |
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Principles Of Sustainable Finance
Authors: Dirk Schoenmaker, Willem Schramade
1st Edition
0198826605, 978-0198826606
