Question: How much should you pay for a 10 lot subdivision if you require a 19% rate of return, no lots will be sold the first

How much should you pay for a 10 lot subdivision if you require a 19% rate of return, no lots will be sold the first 3 years, and then you will sell one lot every 6 months until the lots are sold out. The lots will sell for 12,000 each. Therefore, the first cash flows is received in the middle of the fourth year.

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