Based on an analysis, the project is expected to only net a 6.23% profit, however, what might happen to this profit if the land was twice as big?

(HINT: To answer look at Table 10.2 (lines 1 to 18) and adjust those by a reasonable factor between 1.0 to 2.0 due to double the size of the development....

Bring those values back to table 10.1 & then double the other values shown in Table 10.1 (except line 60 which is 40%) and determine the new net profit after tax...)

***PLEASE note which numbers you think would NOT double to calculate the new profit margin***

LINE* NUMBERS 320 PERCENT 100.00% 1 + 2 3 4 + 5 + 6 7 8 9 10 11 13 14 15 22 34 41 47 + 48 TABLE 10.1 Summary of Financial Projections PER LOT PROJECT SUMMARY TOTALS Income Gross sales $127,418,934 $398,184 Expenses Predevelopment costs $145,000 $453 Design $500,000 $1,563 Land Development $7,700,000 $24,063 Amenities package $500,000 $1,563 Utility fees $3,040,000 $9,500 Marketing/advertising $470,000 $1,469 Real estate taxes/insurance $1,336,050 $4,175 House construction $48,622,216 $151,944 Land acquisition $21,440,000 $67,000 Overhead & supervision $4,361,929 $13,631 Developer's fees $1,869,398 $5,842 Selling costs/points $10,193,515 $31,855 Interest on land $5,499,360 $17,186 Interest on loan $2,693,388 $8,417 Equity partner's return $5,814,111 $18,169 Total expenses -$114,184,967 -$356,828 Net profit before tax $13,233,968 $41,356 Income taxes paid --$5,293,587 - $ 16,542 Net profit after tax $7,940,381 $24,814 0.11% 0.39% 6.04% 0.39% 2.39% 0.37% 1.05% 38.16% 16.83% 3.42% 1.47% 8.00% 4.32% 2.11% 4.56% -- 89.61% 10.39% 60 --4.15% 6.23% * See the following pages for detailed calculations and explanations of items in this summary Line numbers refer to Lines on the detailed explanations. TABLE 10.2 Sample Economic Feasibility Analy All figures shown in thousands of dollars ** Average cost or income per lot expressed in whole dollars AVERAGE PER LOT 9 10 TOTALS 320 8 7 6 UNIT COST 5 1 3 2 $70 $75 $100 $500 $10,000 $9,500 NOTES YEARS: Expenditures Feasibility 2 Zoning 3 Engineering design 4 Grading/earth balance/walls 5 Land development: community 6 Land development: on lots 7 Amenities package 8 Utility fees 9 Marketing/advertising 10 Real Estate Taxes/insurance 11 House construction 12 Subtotal 13 Land acquisition 14 Overhead and supervision 15 Developer's tee 16 Interest on loan 17 Interest on land 1A Tntal expenditures $70 $219 $75 $234 $500 $1,563 $500 $1,563 $4.000 $12,500 $200 $3,200 $10,000 $500 $1,563 $3,040 $9,500 $20 $470 $1,469 $15 $1,336 $4,175 $3,343 $48,622 $151,944 $3,578 $62,313 $194,729 $0 $21,440 $67,000 $250 $4,362 $13,631 $107 $1,869 $5,842 $0 $2,693 $8,417 $0 $5,499 $17,186 $3.936 $98,177 $306,804 $337 1-18 $200 $200 $500 $2,500 $1,500 $500 $500 $500 $500 $500 $500 $3,040 $100 $100 $50 $50 $50 $50 $50 $288 $243 $197 $148 $85 $23 $7,000 $7,210 $7,426 $7,649 $7,879 $8,115 $200 $6,677 $9,388 $8,503 $8,174 $8,347 $8,514 $8,687 $0 $2,966 $3,037 $3,037 $3,272 $4,188 $4,188 $502 $14 $467 $595 $572 $584 $596 $608 $6 $200 $282 $255 $245 $250 $255 $261 $641 $629 $537 $407 $281 $158 $40 $1,458 $1,093 $841 $543 $208 $20 $220 $12,409 $15,330 $14,021 $13,511 $14,193 $13,919 $10,119 $140,000 $245 $657 $250 7.00% $17 3.00% $7 8.00% 8.00% $520 $1,336 LINE* NUMBERS 320 PERCENT 100.00% 1 + 2 3 4 + 5 + 6 7 8 9 10 11 13 14 15 22 34 41 47 + 48 TABLE 10.1 Summary of Financial Projections PER LOT PROJECT SUMMARY TOTALS Income Gross sales $127,418,934 $398,184 Expenses Predevelopment costs $145,000 $453 Design $500,000 $1,563 Land Development $7,700,000 $24,063 Amenities package $500,000 $1,563 Utility fees $3,040,000 $9,500 Marketing/advertising $470,000 $1,469 Real estate taxes/insurance $1,336,050 $4,175 House construction $48,622,216 $151,944 Land acquisition $21,440,000 $67,000 Overhead & supervision $4,361,929 $13,631 Developer's fees $1,869,398 $5,842 Selling costs/points $10,193,515 $31,855 Interest on land $5,499,360 $17,186 Interest on loan $2,693,388 $8,417 Equity partner's return $5,814,111 $18,169 Total expenses -$114,184,967 -$356,828 Net profit before tax $13,233,968 $41,356 Income taxes paid --$5,293,587 - $ 16,542 Net profit after tax $7,940,381 $24,814 0.11% 0.39% 6.04% 0.39% 2.39% 0.37% 1.05% 38.16% 16.83% 3.42% 1.47% 8.00% 4.32% 2.11% 4.56% -- 89.61% 10.39% 60 --4.15% 6.23% * See the following pages for detailed calculations and explanations of items in this summary Line numbers refer to Lines on the detailed explanations. TABLE 10.2 Sample Economic Feasibility Analy All figures shown in thousands of dollars ** Average cost or income per lot expressed in whole dollars AVERAGE PER LOT 9 10 TOTALS 320 8 7 6 UNIT COST 5 1 3 2 $70 $75 $100 $500 $10,000 $9,500 NOTES YEARS: Expenditures Feasibility 2 Zoning 3 Engineering design 4 Grading/earth balance/walls 5 Land development: community 6 Land development: on lots 7 Amenities package 8 Utility fees 9 Marketing/advertising 10 Real Estate Taxes/insurance 11 House construction 12 Subtotal 13 Land acquisition 14 Overhead and supervision 15 Developer's tee 16 Interest on loan 17 Interest on land 1A Tntal expenditures $70 $219 $75 $234 $500 $1,563 $500 $1,563 $4.000 $12,500 $200 $3,200 $10,000 $500 $1,563 $3,040 $9,500 $20 $470 $1,469 $15 $1,336 $4,175 $3,343 $48,622 $151,944 $3,578 $62,313 $194,729 $0 $21,440 $67,000 $250 $4,362 $13,631 $107 $1,869 $5,842 $0 $2,693 $8,417 $0 $5,499 $17,186 $3.936 $98,177 $306,804 $337 1-18 $200 $200 $500 $2,500 $1,500 $500 $500 $500 $500 $500 $500 $3,040 $100 $100 $50 $50 $50 $50 $50 $288 $243 $197 $148 $85 $23 $7,000 $7,210 $7,426 $7,649 $7,879 $8,115 $200 $6,677 $9,388 $8,503 $8,174 $8,347 $8,514 $8,687 $0 $2,966 $3,037 $3,037 $3,272 $4,188 $4,188 $502 $14 $467 $595 $572 $584 $596 $608 $6 $200 $282 $255 $245 $250 $255 $261 $641 $629 $537 $407 $281 $158 $40 $1,458 $1,093 $841 $543 $208 $20 $220 $12,409 $15,330 $14,021 $13,511 $14,193 $13,919 $10,119 $140,000 $245 $657 $250 7.00% $17 3.00% $7 8.00% 8.00% $520 $1,336