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10. A custom homebuilder has two purchase options for purc community developer. Each lot costs $50,000. The two options a Bulk purchase. For the annual

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10. A custom homebuilder has two purchase options for purc community developer. Each lot costs $50,000. The two options a Bulk purchase. For the annual opti to hold the lots. A $10,000 credit toward from the deposit for each lot purchased. MARR is 12% Chase options for purchasing 20 lots from the 50,000. The two options are Annual purchase or he annual option, the down payment of $200,000 will be made now $10,000 credit toward the purchase of the lots will be withdrawn Year Now Bulk Purchase 20 lots Annual purchase $200,000 down payment 5 lots 5 lots 5 lots 5 lots a Based on Incremental rate of return analysis, which purchase option should the builder choose

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