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You are preparing a loan package for financing of a land development project with a cost of $2.5 million and infrastructure costs of $12,000 per

You are preparing a loan package for financing of a land development project with a cost of $2.5 million and infrastructure costs of $12,000 per lot on 50 acres and entitled to build 200 single family lots over the next four years. The primary risks to a potential lender are?

(A) Inability to obtain a higher density of lots in the development.

(B) A decrease in the sales prices per lot and lower lot absorption.

(C) An increase in the sales prices per lot and higher lot absorption.

(D) An increase in the market level of interest rates.

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