UTS Nizar Hadi

Name : Nizar Hadi
NIM : 06407047


An investor buy land properties for $100.000, where above it will build an office building that will be rent to other customer. There’s 3 alternatife which can do in the term of build that building :
1. Build a 2 floor office with 2000 m2 width
2. Build a 4 floor office with 3500 m2 width
3. Build a 8 floor office with 8000 m2 width
Cost estimated and profit from that building for over 20 years is :

a) Which alternative that best for the investor ?
b) What is the minnimal rent cost must be decrease from A and C alternative, so the investor will choose B alternative?
c) What is the max build cost from an alternative that choose from option a), so investor consistens with his choise?
Answer :
a) The best alternative for investor are the alternative C
b) The alternative must be decreased because of the average of all the cost is too high.
c) Alternative C :
8 X 1 rent 8000 m2 width
Cost : $ 2.100.000 X 1 = $ 2.100.000
Rent : $ 32 X 8000 = $ 256.000
Value: $ 400.000 X 1 = $ 400.000
TOTAL = $ 2.756.000