(Answered) You are contemplating development of single-family houses

Management Studies

You are contemplating development of single-family houses on an acre of land you already own.The land can be subdivided into 1, ½, or ¼ acre lots. 1-acre lot houses are typically 4,000 SF andcost $350,000 to construct.Houses on ½ acre lots are 3,000 SF and cost $ 225,000 to build and ¼ acre houses are 2,000 SFand cost $175,000.Subdivision costs (legal, infrastructure etc.) are $40,000 per lot.A 4,000 SF house will sell for $500,000, a 3,000 SF house will sell for $350,000 and a 2,000 SFhouse will sell for $250,000.What should you do?

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