An investor is considering buying some land for $100,000 and constructing an office building on it. Three different buildings are being analyzed.

Building Height

2 Stories 5 Stories 10 Stories

Cost of building (excluding cost of land) $500,000 $900,000 $2,200,000

Resale value of land building after 20-year horizon 200,000 300,000 350,000

Annual net rental income 70,000 110,000 215,000

Required:

Using benefit-cost ratio analysis and a 7% MARR, determine which alternative, if any, should be selected.

Which of the following statements accurately describes how costs and benefits are calculated?

What two elements normally must exist before a person can be held liable for a crime

Match the given situations to the type of risks that a business may face while taking credit. 1. beta ltd. had taken a loan from a bank for a period of 15 years, but its sales are gradually showing a decline. 2. alpha ltd. has taken a loan for increasing its production and sales, but it has not conducted any research before making this decision. 3. delphi ltd. has an overseas client. the economy of the client’s country is going through severe recession. 4. delphi ltd. has taken a short-term loan from the bank, but its supply chain logistics are not in place. a. foreign exchange risk b. operational risk c. term of loan risk d. revenue projections risk