Parcel A	Parcel B
Mil rate	22.95	21
Tax abatement	0	18
Assessed Value	12835865	12835865
Annual Tax	?	?
Lease Value (annual)	1162800	1162800
Years	22	22
Discount rate	2.86	2.86
Market Value	?	?

In order to attract new development NaiveTown created a special tax abatement district in order to create an economic incentive for corporations to purchase and develop industrial land inside the jurisdiction. The tax abatement reduces the mill rate by 18 mils for property inside the special tax abatement district (the mil rate without the abatement is $ 21 per thousand). Unfortunately, no one in NaiveTown has an MPA and so they do not recognize that market value of the parecels are the discounted net benefits of the lease value of the property minus the taxes. Presently two nearly identical parcels are for sale. Parcel A is SavantTown and thus outside of the special tax abatement district and receives no abatement while parcel B now gets the discount. Use the table above to calcuate the market values of the two properties assuming a 22 year holding period and an annual discount rate of 2.86%. How much more will the market value be for Parcel B compared to Parcel A?