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You wish to purchase 3 acres and build a 5000 sqft home on the lot. The land will cost $260,000 and construction of the home
You wish to purchase 3 acres and build a 5000 sqft home on the lot. The land will cost $260,000 and construction of the home will cost $530,000. You believe you will sell the finished home in one year for $1 million, but that the riskiness of the cash flow is about equivalent to a REIT security earning 10%. The 1yr yield on a T-bond is 5%. What is the NPV of your proposed venture? $140,233 $127,641 $162,381 $119,091
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