An undeveloped piece of property can be developed for 60000, Ask an Expert

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An undeveloped piece of property can be developed for $60,000 in one year. At that time, it will either be worth $220,000 or $40,000. The interest rate is 5%. If the property cannot be developed for a profit in the down economy, the property can be sold for $5000.

A similar property that is developed now is valued at $190,000. What should be the current value of the undeveloped land?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92871904

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