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    20-21 Spring Midterm 394

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    This document contains a midterm examination for a civil engineering construction and economy course. It includes 3 questions: 1. Calculating the annualized profit of a tourism complex with 40 villas over 13 years, considering initial costs, rental payments, taxes, and maintenance costs. 2. Determining the minimum monthly rent that should be charged for each of 150 shops in a shopping center to break even over 20 years, given initial investment, maintenance costs, taxes, and a 20% discount rate. 3. Conducting a present worth analysis to select the optimal machine for a factory between Machine A and Machine B, comparing their initial costs, operating costs, salvage values, extra costs, revenues, and

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    20-21 Spring Midterm 394

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    This document contains a midterm examination for a civil engineering construction and economy course. It includes 3 questions: 1. Calculating the annualized profit of a tourism complex with 40 villas over 13 years, considering initial costs, rental payments, taxes, and maintenance costs. 2. Determining the minimum monthly rent that should be charged for each of 150 shops in a shopping center to break even over 20 years, given initial investment, maintenance costs, taxes, and a 20% discount rate. 3. Conducting a present worth analysis to select the optimal machine for a factory between Machine A and Machine B, comparing their initial costs, operating costs, salvage values, extra costs, revenues, and

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    This document contains a midterm examination for a civil engineering construction and economy course. It includes 3 questions: 1. Calculating the annualized profit of a tourism complex with 40 villas over 13 years, considering initial costs, rental payments, taxes, and maintenance costs. 2. Determining the minimum monthly rent that should be charged for each of 150 shops in a shopping center to break even over 20 years, given initial investment, maintenance costs, taxes, and a 20% discount rate. 3. Conducting a present worth analysis to select the optimal machine for a factory between Machine A and Machine B, comparing their initial costs, operating costs, salvage values, extra costs, revenues, and

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    12 views2 pages

    20-21 Spring Midterm 394

    Uploaded by

    You And us
    This document contains a midterm examination for a civil engineering construction and economy course. It includes 3 questions: 1. Calculating the annualized profit of a tourism complex with 40 villas over 13 years, considering initial costs, rental payments, taxes, and maintenance costs. 2. Determining the minimum monthly rent that should be charged for each of 150 shops in a shopping center to break even over 20 years, given initial investment, maintenance costs, taxes, and a 20% discount rate. 3. Conducting a present worth analysis to select the optimal machine for a factory between Machine A and Machine B, comparing their initial costs, operating costs, salvage values, extra costs, revenues, and

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    CIVIL ENGINEERING DEPARTMENT

    CIVL394 – CIVIL ENGINEERING CONSTRUCTION AND ECONOMY


    2020-21 Spring Midterm Examination

    Prepared by: Assoc.Prof.Dr.Tolga Çelik


    Time Allowed : 120 min. (including submission) Date :26 April 2021

    1. Consider a construction company is planning to build a tourism complex targeting tourists


    visiting North Cyprus. This tourism complex will be composed of 40 villas and recreational
    areas for an estimated initial cost of about $2,430,000. The company’s real estate manager is
    expecting to receive monthly rental payments of $950 per villa. For the entire business
    activities that is planned to take place in the proposed tourism complex, the real estate
    manager expects to pay approximately $15,000 of tourism revenue tax annually, and the
    technical works team assumes that for the entire tourism complex, there should be a
    maintenance every 3 years at an approximate cost of $11,500. Board of directors of the
    company are wondering, if the entire tourism complex is sold after 13 years of operation based
    on the aforementioned inflows and outflows for a cost of $2,100,000 what would be the
    annualized profit of this tourism complex if you consider discount rate as 10%? (30 points)

    2. The costs of building a shopping center including 150 shops are as follow: (30 points)

    Initial investment $500,000

    Maintenance per shop per month $50

    Taxes per year for the entire shopping centre $50,000

    Considering 20 years as project length of life with 20% discount rate what is the minimum
    monthly rent that should be charged for each shop to reach to break-even point?

    1
    3. Select the optimal machine for your factory based on the Present Worth Analysis (40 marks).

    Machine A Machine B
    Initial cost $13,000 $19,000
    Annual operating cost $4,500 $9,000
    Salvage value $6,000 $3,000
    First 4 digit of your
    Extra cost every three years N/A
    Student numbers
    First 4 digit of your Student
    Extra cost every six years N/A
    numbers
    Annual revenue excluding last year $15,000 $14,000
    Length of life (in years) 6 8

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