Scenario: You purchase... 10 acres of bare ground in an area zoned commercial/office. Streets and utilities are in the street. The price paid is $6 per square foot. Holding time: 5 years. If you want a: (a)15% annual return on your land, what will you have to sell the land for in 5 years? (Per square foot, not including any costs) (b) for a 15% total return? (per square foot, not including any costs)
Scenario: You purchase... 10 acres of bare ground in an area zoned commercial/office. Streets and utilities are in the street. The price paid is $6 per square foot. Holding time: 5 years. If you want a: (a)15% annual return on your land, what will you have to sell the land for in 5 years? (Per square foot, not including any costs) (b) for a 15% total return? (per square foot, not including any costs)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Scenario: You purchase...
10 acres of bare ground in an area zoned commercial/office.
Streets and utilities are in the street.
The price paid is $6 per square foot.
Holding time: 5 years.
- If you want a:
(a)15% annual return on your land, what will you have to sell the land for in 5 years? (Per square foot, not including any costs)
(b) for a 15% total return? (per square foot, not including any costs)
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