Future

value.

$$Jackson Enterprises has just spent

$$$$230$ comma $000230,000$

to purchase land for a future beach front property development project that will include rental$$ cabins, lodge, and recreational facilities. Jackson Enterprises has not committed to the development$$ project, but will decide in five years whether to go forward with the project or sell off the land. Real estate values increase annually at

$4\mathrm{.}54\mathrm{.}5\%$

for unimproved property in this area. For how much can Jackson Enterprises expect to sell the property in five years if it chooses not to proceed with the beach front development$$ project? What if Jackson Enterprises holds the property for ten years and then$$ sells?

Question content area bottom

Part $1$

For how much can Jackson Enterprises expect to sell the property in five years if it chooses not to proceed with the beach front development$$ project?