Question
Your boss would like you to check if this project is financially feasible according to the following information: a. The required rate of return is
Your boss would like you to check if this project is financially feasible according to the\ following information:\ a. The required rate of return is 6% for a 10-year period of time.\ b. A 5.0% interest rate for a 5-year secured loan compounded annually. This loan is to be\ paid in equal amounts over the first 5-years.\ c. Operation and maintenance costs = $12/SF/year.\ d. Annual Fire Insurance Cost = 0.08% of initial project cost\ e. Periodic Utility Upgrade Cost = $15,000 every 6 years\ f. Periodic Structural Upgrade Cost = $25,000 every 10 years\ g. They believe they can generate $2,500,000 in revenue each year which will result\ in a profit of 16% of gross revenue. Assume that the calculation of this profit does not\ include the operation and maintenance costs, fire insurance, and upgrade costs\ mentioned abov
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