13 March 2008
There is a hotel in which second floor is vaccant.and one pub approached to hotel to give the part of that vaccant palace to pub on lease.but to make the space ready for lease,the hotel had to set up partition and a small kitchen.various estimates of the upfront renovation cost ranged between Rs. 750000 and rs.1000000.the cost would be depreciated over the life of the project using slm,with zero salvage value.My question is how we will consider range while evaluating capital budgeting proposal?