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ham co. purchased land for develpping a carpark. purchase price $2.3m. development $6m. if there is a road built nearby, cashflow will be $1,1m. if
ham co. purchased land for develpping a carpark. purchase price $2.3m. development $6m. if there is a road built nearby, cashflow will be $1,1m. if there is no road, casflow is $180,000. 8% is the d/c rate. what is the npv? hamco can sell the project after 1 yr for $10m, what is the value now? is it worth doing so?
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