How much will the site be worth after construction

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Problem

You are part of a development team that is planning to develop a residential block of apartments, and the development is expected to be completed in 3 years' time. The price of the development site is $3,500,000. The developer has secured a construction loan from ABC Bank at an interest rate of 6% p.a. for the construction period. In 24 months into the construction, the developer will receive deposits for the purchase of the development from the prospective buyers. The total deposit will be $6,400,000. Get the instant assignment help. How much will the site be worth after construction at a 6% p.a. interest rate? What is the present value of the $6,400,000 deposit at a 6% p.a. interest rate?

Reference no: EM133925951

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