Question: ABC Development has embarked on a condominium project on a one-acre site, which will comprise 100 two-bedroom units, each priced at $750,000. The company acquired

ABC Development has embarked on a condominium project on a one-acre site, which will comprise 100 two-bedroom units, each priced at $750,000. The company acquired the land for a total cost of $23,000,000. The estimated combined hard and soft construction costs for the building amount to $400,000 per unit. If the developer's target cost-based profit margin of 20%, is this development investment financially viable?

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Yes

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