Real Estate Principles 3rd Edition by David Ling,Wayne Archer

Exercise 6

You are thinking about purchasing some vacant land. You expect to be able to sell the land 10 years from now for $500,000. What is the most you can pay for the land today if your required rate of return is 15 percent What is the expected (annualized) return on this investment over the 10-year holding period if you purchase the land for $170,000