What is the house price per unit? A six-units detached house development project costs are the following: - Total land cost 30,000,000 Baht (pay the beginning of the project) - House construction cost 2,000,000 Baht per unit (pay one unit at the end of month) - Total SG&A 6,000,000 Baht (pay equally at the end of month 1 - 6) Total project time is six months Detached house will be sold 1 unit per month starting month 1, which is paid full payment at the end of each month (means get full paid 1 unit at the end of month 1-6). The selling price is 30 percent markup. Weighted average cost of capital of project is 12%.
What is the house price per unit? A six-units detached house development project costs are the following: - Total land cost 30,000,000 Baht (pay the beginning of the project) - House construction cost 2,000,000 Baht per unit (pay one unit at the end of month) - Total SG&A 6,000,000 Baht (pay equally at the end of month 1 - 6) Total project time is six months Detached house will be sold 1 unit per month starting month 1, which is paid full payment at the end of each month (means get full paid 1 unit at the end of month 1-6). The selling price is 30 percent markup. Weighted average cost of capital of project is 12%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:What is the house price per unit? A six-units
detached house development project costs
are the following: - Total land cost
30,000,000 Baht (pay the beginning of the
project) - House construction cost
2,000,000 Baht per unit (pay one unit at the
end of month) - Total SG&A 6,000,000 Baht
(pay equally at the end of month 1 - 6) Total
project time is six months Detached house
will be sold 1 unit per month starting month
1, which is paid full payment at the end of
each month (means get full paid 1 unit at
the end of month 1-6). The selling price is
30 percent markup. Weighted average cost
of capital of project is 12%.
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