The retrofit and breakeven assuming no units were sold

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You own a construction and real estate company. You are building a new office building. The cost of the building is going to be $6,000,000. Your down payment is $250,000. Your bank gave you an interest rate of 4%, compounded monthly.

1. After five years, you find out you need to retrofit the building to meet new energy standards. The retrofit will cost $750,000, determine the new rent you will charge in order to cover the retrofit and breakeven assuming no units were sold.

2. What is the rent under the previous question's conditions if you want a 25% profit?

3. What is the rent under Question’s 1 conditions if you want a 50% profit?

4. What is the sale price per unit under Question’s 1 conditions if you want a 25% profit?

Reference no: EM131873532

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