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no more information this is what i have got ! Mr. van Loan is a wealthy banker and plans to invest in a building in
no more information this is what i have got !
Mr. van Loan is a wealthy banker and plans to invest in a building in one year, if at that point rent levels make construction favorable. Mr. van Loan consults you as a skilled appraiser and would like to know the real option value of the land. Data in SEK as follows: . Construction cost of building is 400 000 000. During the first year after construction there is a 50 % chance that the high NOI will be 65 000 000 and the low 35 000 000. Expected return is 12 %. In either case NOI is expected to increase at 2 % annuallyStep by Step Solution
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