Spreadsheet Problem. Refer to the Ch10_H&BU tab in the Excel Workbook provided on the Web site, which replicates the highest and best use analysis example in the chapter.
a. Suppose the construction cost is $3.5 million for office, $6.5 million for retail, $2.5 million for apartment, and $3.5 million for warehouse. How does this change the highest and best use of the site and the land value?
b. Use the same construction costs as part (a) but assume that office income would increase by 4 percent per year instead of 3 percent per year. Does this change the highest and best use of the site and the land value?