Problem $17-1$

Refer to Concept Box $17\mathrm{.}1.$ A revised market study indicates the following: pricing for standard interior lots will probably be $\backslash (\backslash$$ $108,000\backslash )$ each, premium interior lots $\backslash (\backslash$$ $123,000\backslash ),$ and corner lots $\backslash (\backslash$$ $130,000\backslash )$; the average development cost per lot has been revised up to $\backslash (\backslash$$ $76,000\backslash )$; administrative costs, and so on remain at $12\mathrm{.}5$ percent of gross revenue.

Required:

a$.$ Can the same $18$ percent return on total cost continue to be maintained?

b$.$ Suppose that the developer wants a $21$ percent return on cost$.$ How much can be paid for the land?

Complete this question by entering your answers in the tabs below.

Required

A

Required B

What will be the return on total cost based on the revised market study?

Note: Do not round intermediate calculations. Round your answer to one decimal place.

What will be the return on total cost based on the revised market study?

Problem $17-1$

Refer to Concept Box $17\mathrm{.}1.$ A revised market study indicates the following: pricing for standard interior lots will probably be $\backslash (\backslash$$ $108,000\backslash )$ each, premium interior lots $\backslash (\backslash$$ $123,000\backslash ),$ and corner lots $\backslash (\backslash$$ $130,000\backslash )$; the average development cost per lot has been revised up to $\backslash (\backslash$$ $76,000\backslash )$; administrative costs, and so on remain at $12\mathrm{.}5$ percent of gross revenue.

Required:

a$.$ Can the same $18$ percent return on total cost continue to be maintained?

b$.$ Suppose that the developer wants a $21$ percent return on cost$.$ How much can be paid for the land?

Complete this question by entering your answers in the tabs below.

Required

A

Required

B

Suppose that the developer wants a $21$ percent return on cost$.$ How much can be paid for the land?

Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar.

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Paid for the land