An investor is considering buying some land for $100,000 and constructing an office building on it. three different buildings are being analyzed. building height 2 stories 5 stories 10 storiesinitial cost (excludes land) $400,000 $800,000 $2,100,000resale value* of land + building after 20-year horizon 200,000 $300,000 $400,000annual net rental income $70,000 $105,000 $256,000resale value considered a reduction in cost not a benefit. using benefit-cost ratio analysis and an 8% marr, determine which alternative, if any, should be selected. a) calculate the b/c ratios of each individual building design. b) conduct an incremental bc analysis. based on your analysis state which alternative should be selected?

This problem has been solved! see the answercompute and interpret altman's z-scoresfollowing is selected financial information for ebay, for its fiscal years 2005 and 2006.(in millions, except per share data) 2006 2005current assets $ 4,970.59 $ 3,183.24current liabilities 2,518.39 1,484.93total assets 13,494.01 11,788.99total liabilities 2,589.38 1,741.00shares outstanding 1,368.51 1,404.18retained earnings 4,538.35 2,819.64stock price per share 30.07 43.22sales 5,969.74 4,552.40earnings before interest and taxes 1,439.77 1,445.18compute and interpret altman z-scores for the company for both years. (do not round until your final answer; then round your answers to two decimal places.)2006 z-score = answer2005 z-score = answerwhich of the following best describes the company's likelihood to go bankrupt given the z-score in 2006 compared to 2007.the z-score in 2006 is half of the 2005 score. both z-scores are well above the score that represents a healthy company.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly increased the risk of bankruptcy.the z-score in 2006 is half of the 2005 score. the z-score has decreased sharply, which suggests the company is in financial distress.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly lowered the risk of bankruptcy.