• Construct a high-rise office building. • Construct a hotel. • Construct a shopping center. Each project requires each partner to r

Structural Analysis
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ISBN:9781337630931
Author:KASSIMALI, Aslam.
Publisher:KASSIMALI, Aslam.
Chapter2: Loads On Structures
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Think-Big Development Co. is a major investor in commercial real-estate development projects. Read the problem and decide under which classification the problem falls?
• Think-Big Development Co. is a major investor in commercial real-
estate development projects.
• They are considering three large construction projects
• Construct a high-rise office building.
• Construct a hotel.
• Construct a shopping center.
· Each project requires each partner to make four investments: a
down payment now, and additional capital after one, two, and three
years,
Investmant Capital Requirements
Year
Oflice Bullding
Hotel
Shopping Center
$40 million
SB0 million
$90 million
60 million
B0 millon
50 million
90 million
80 milion
20 million
10 milien
70 millon
60 million
Net present value
$45 milion
S70 million
$50 million
Question: At what fraction should Think-Big invest in each of the
three projects?
O Resource-allocation
Transcribed Image Text:Think-Big Development Co. is a major investor in commercial real-estate development projects. Read the problem and decide under which classification the problem falls? • Think-Big Development Co. is a major investor in commercial real- estate development projects. • They are considering three large construction projects • Construct a high-rise office building. • Construct a hotel. • Construct a shopping center. · Each project requires each partner to make four investments: a down payment now, and additional capital after one, two, and three years, Investmant Capital Requirements Year Oflice Bullding Hotel Shopping Center $40 million SB0 million $90 million 60 million B0 millon 50 million 90 million 80 milion 20 million 10 milien 70 millon 60 million Net present value $45 milion S70 million $50 million Question: At what fraction should Think-Big invest in each of the three projects? O Resource-allocation
• Think-Big Development Co. is a major investor in commercial real-
estate development projects.
• They are considering three large construction projects
Construct a high-rise office building.
• Construct a hotel.
Construct a shopping center.
• Each project requires each partner to make four investments: a
down payment now, and additional capital after one, two, and three
years.
Investment Capital Requlrements
Year
Office Building
Hotel
Shopping Center
$40 million
$80 million
$90 million
60 millon
80 millon
50 million
90 million
80 million
20 million
10 million
70 millon
60 million
Net present value
$45 million
$70 million
$50 million
Question: At what fraction should Think-Big invest in each of the
three projects?
O Resource-allocation.
O Cost-benefit-trade-off,
O Mixed problems.
O Transportation problems.
O Assignment problems.
Transcribed Image Text:• Think-Big Development Co. is a major investor in commercial real- estate development projects. • They are considering three large construction projects Construct a high-rise office building. • Construct a hotel. Construct a shopping center. • Each project requires each partner to make four investments: a down payment now, and additional capital after one, two, and three years. Investment Capital Requlrements Year Office Building Hotel Shopping Center $40 million $80 million $90 million 60 millon 80 millon 50 million 90 million 80 million 20 million 10 million 70 millon 60 million Net present value $45 million $70 million $50 million Question: At what fraction should Think-Big invest in each of the three projects? O Resource-allocation. O Cost-benefit-trade-off, O Mixed problems. O Transportation problems. O Assignment problems.
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