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A developer has paid $50,000 to have a plot of land analyzed for its potential to build a housing de

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A developer has paid $50,000 to have a plot of land analyzed for its potential to build a housing de

A developer has paid $50,000 to have a plot of land analyzed for its potential to build a housing development on. The results of the analysis suggest that the total cost of building (not including the $50,000 paid for the analysis) would be $670,000 and the revenues from the development would be $700,000. Should you do the project? Would your answer be different if the cost of having the analysis done was only $10,000?

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stars_and_moon Author

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8 years ago

Perfectly answered Smiling Face with Open Mouth

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kingby

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8 years ago

Yup, vote with confidence!

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