AHEAD Review Center is planning to expand its operation and plans to purchase a parcel of land on which to construct a building for their review center, which t
Math
beccalynch3362
Question
AHEAD Review Center is planning to expand its operation and plans to purchase a parcel of land on which to construct a building for their review center, which they will need 6 years hence. The current costs are: land: 3M; building: 5.5M. Since these are not needed immediately, the company plans to defer the purchase of the land and the construction of the building until they are needed. If the value of the land and the cost of the building are expected to appreciate at the rates of 12% and 10% per annum, respectively. What will be the total cost of the investment after 6 years?
1 Answer

1. User Answers airaleeeeen
2,160,000 for the land and 3,300,000 for the building. A total of 5,460,000