Each Parcel of Land in a New Development Is Selling

question 12

Multiple Choice

Each parcel of land in a new development is selling for $15,000 and the total project revenue is estimated to be $5,000,000. The project lender has stated that the loan should be paid off when 80% of the total project revenue has been earned. The total loan amount is $3,500,000. What is the release price for each parcel?

• A) $8,400
• B) $13,215
• C) $18,750
• D) None of the above

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Definitions:

Resource Drivers

Factors or activities that significantly influence the consumption of resources in a process or operation.

Activity Drivers

Factors that influence the costs of business activities by measuring the amount of activity that drives costs.

Root Cause

The underlying or fundamental reason for a problem or issue, which, when addressed, prevents recurrence.

Cost Drivers

Activities or factors that cause a change in the cost of a good or service, crucial for budgeting, planning, and cost management.