A Developer of a New Townhome Community Has Gathered the Following

question 23

Multiple Choice

A developer of a new townhome community has gathered the following market information for University City. The developer estimates that there will be 1,200 home (all types) sales in University City over the next year. An analysis of demographic information has revealed that the core market share for the townhome project within the community is 10%. Assuming a capture rate of 20%, what is the developer's first year projection of townhome sales in the new community?

• A) 24 units
• B) 120 units
• C) 240 units
• D) 600 units

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Definitions:

Concert Costs

Expenses associated with organizing, promoting, and hosting a live music performance.

Resell

The act of selling a purchased good or service to another party, often for a price higher than the original purchase price.

Price Differential

The variation in the price of a product or service in different markets or purchase conditions.

Rational Decision Maker

An individual who makes choices based on reasoning and the systematic evaluation of options to achieve the most beneficial outcome.