Question: $ 4 million over her construction cost, which excludes the land; and there is a 3 0 percent chance that she can sell it to

$4 million over her construction cost, which excludes the land; and there is a 30 percent chance that she can sell it to an insurance company for $5 million over her construction cost (also excluding the land). If, instead of the shopping center, she decides to build the 1,500 apartments, she places probabilities on the profits as follows: There is a 60 percent chance that she can sell the apartments to a real estate investment corporation for #3000 each over her construction cost; there is a 40 percent chance that she can get only $2000 each over her construction cost. (Both exclude the land cost.)
If the land is not rezoned, she will comply with the existing zoning restrictions and simply build 600 homes, on which she expects to make $4000 over the construction cost on each one (excluding the cost of the land).

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