Question
Six months ago, you purchased a tract of land in an area where a new industrial park was rumored to be planned. This land cost
Six months ago, you purchased a tract of land in an area where a new industrial park was rumored to be planned. This land cost you $110,000, and the seller offered you an interest-free loan for 65 percent of the land cost. Today, the industrial park project was formally announced, and an attorney for the developer has just offered you $170,000 for your land. If you accept this offer, what will be your holding period return on this investment? Round your answers to two decimal places.
Holding Period Return (%) based on equity investment only: %
Holding Period Return (%) based on total original cost: %
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