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Studies determined that the best use of a site will generate an income of 10,000 per year. Overall economic cost ( not including land) will
Studies determined that the best use of a site will generate an income of 10,000 per year. Overall economic cost ( not including land) will be $5,000 per year. Assume the investment will last forever. The rate of return is 10%. What should be the value of the land today? (Hint, both income and costs will start 1 year from now. That is, like in the 1book, today is t=0 and the investment will start generating income and incurring costs at t=1.
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