please solve and provide clear and correct answer thanks A developer plans to purchase a vacant lot and build apartment units for which represent the highest and best use of the land. Assuming the anticipated NOI for the projected units for $850,000, the market-derived cap rates for the building and land are 11% and 9% respectively, and the projected value of the proposed building is 5,900,000. Based on the land residual technique, the land value would be. a. $2,166,667 b. $2,233,333 c. $2,600,000 d. $2,900,000 The answer falls outside of the range provided.
please solve and provide clear and correct answer thanks A developer plans to purchase a vacant lot and build apartment units for which represent the highest and best use of the land. Assuming the anticipated NOI for the projected units for $850,000, the market-derived cap rates for the building and land are 11% and 9% respectively, and the projected value of the proposed building is 5,900,000. Based on the land residual technique, the land value would be. a. $2,166,667 b. $2,233,333 c. $2,600,000 d. $2,900,000 The answer falls outside of the range provided.
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 10PA: The Ham and Egg Restaurant is considering an investment in a new oven that has a cost of $60,000,...
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please solve and provide clear and correct answer thanks
A developer plans to purchase a vacant lot and build apartment units for which represent the highest and best use of the land. Assuming the anticipated NOI for the projected units for $850,000, the market-derived cap rates for the building and land are 11% and 9% respectively, and the projected value of the proposed building is 5,900,000. Based on the land residual technique, the land value would be.
a. $2,166,667
b. $2,233,333
c. $2,600,000
d. $2,900,000
The answer falls outside of the range provided.
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