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Thank you! Rocks and Concrete works with commercial real estate parks to develop business complexes. The initial investment in land is $515,000. This investment requires
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Rocks and Concrete works with commercial real estate parks to develop business complexes. The initial investment in land is $515,000. This investment requires a working capital of $20,000. Before building, they must The building complex will be completed in two years; at the end of the first year, the cost is $742,000, and at the end of year 2 , it will be $1,384,000. After the building complex is complete, Rocks and Concrete can begin leasing, they expect to receive $750,000 in year 2,$1,429,000 in year 3 , and $1,600,000 in years 4 and 5 . The roadway will need to be repaved in year two (2) and year 5 ; the cost per paving is $92,000. The landscaping will cost $45,000 for years 1 through 5 . At the end of year 5 , Rocks and Concrete expects to sell the real estate park for $3,000,000. Rocks and Concrete expects to receive a 16% return on this venture. Show your work and indicate if Rocks and Concrete should proceed. (Round to the nearest whole dollar) Rocks and Concrete works with commercial real estate parks to develop business complexes. The initial investment in land is $515,000. This investment requires a working capital of $20,000. Before building, they must The building complex will be completed in two years; at the end of the first year, the cost is $742,000, and at the end of year 2 , it will be $1,384,000. After the building complex is complete, Rocks and Concrete can begin leasing, they expect to receive $750,000 in year 2,$1,429,000 in year 3 , and $1,600,000 in years 4 and 5 . The roadway will need to be repaved in year two (2) and year 5 ; the cost per paving is $92,000. The landscaping will cost $45,000 for years 1 through 5 . At the end of year 5 , Rocks and Concrete expects to sell the real estate park for $3,000,000. Rocks and Concrete expects to receive a 16% return on this venture. Show your work and indicate if Rocks and Concrete should proceed. (Round to the nearest whole dollar) Step by Step Solution
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