Question
A developer owns a vacant site for which he recently paid $1,000,000. He intends to develop a 15,000 sq. ft. building which will cost
A developer owns a vacant site for which he recently paid $1,000,000. He intends to develop a 15,000 sq. ft. building which will cost a total of $110 per sq. ft. to build (hard and soft costs excluding land). What will the value of the property have to be (rounded to the nearest $10,000) once it is completed and leased if the developer's investors require an 8.0% return
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To calculate the value of the property once it is completed and leased we need to determine the total cost of development and then calculate the value based on the required return rate of the investor...Get Instant Access to Expert-Tailored Solutions
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Management Accounting
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
4th Edition
0730369382, 978-0730369387
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