An investor learns the local college plans to expand and acquire property in a specific neighborhood. The
Fantastic news! We've Found the answer you've been seeking!
Question:
An investor learns the local college plans to expand and acquire property in a specific neighborhood. The college will pay $20 per square foot for one acre (43,560 square feet) of land. Anticipating a sale exactly one year after acquisition, using a discount rate of 15%, and having a minimum required profit of $200,000, what is the maximum price per square foot the investor should pay to acquire the land?
$12.80
$17.39
$557,565
$671,200
Posted Date: