Calculations: 1. You are valuing a 10-acre vacant lot with a septic system and a well on site. The size adjustment factor for 10 acres is 2.23. You have found two recent sales to use as comparables. -Sale 1 is 3.5 acres in size and has a septic system and a well on site. It sold for $200,000. The corresponding size adjustment factor for 3.5 acres is 1.57. -Sale 2 is 7 acres in size and sold for $225,000. However, it does not have a septic system or a well, which will cost $50,000 total to install. The corresponding size adjustment factor for 7 acres is 1.93. CALCULATE THE RANGE OF THE VALUE OF THE 10-ACRE VACANT LOT ADJUSTED FOR SIZE, ROUNDED TO THE NEAREST $1,000. SHOW YOUR WORK
Calculations: 1. You are valuing a 10-acre vacant lot with a septic system and a well on site. The size adjustment factor for 10 acres is 2.23. You have found two recent sales to use as comparables. -Sale 1 is 3.5 acres in size and has a septic system and a well on site. It sold for $200,000. The corresponding size adjustment factor for 3.5 acres is 1.57. -Sale 2 is 7 acres in size and sold for $225,000. However, it does not have a septic system or a well, which will cost $50,000 total to install. The corresponding size adjustment factor for 7 acres is 1.93. CALCULATE THE RANGE OF THE VALUE OF THE 10-ACRE VACANT LOT ADJUSTED FOR SIZE, ROUNDED TO THE NEAREST $1,000. SHOW YOUR WORK
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 30P
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Calculations:
1. You are valuing a 10-acre vacant lot with a septic system and a well on site. The size adjustment factor for 10 acres is 2.23. You have found two recent sales to use as comparables.
-Sale 1 is 3.5 acres in size and has a septic system and a well on site. It sold for $200,000. The corresponding size adjustment factor for 3.5 acres is 1.57.
-Sale 2 is 7 acres in size and sold for $225,000. However, it does not have a septic system or a well, which will cost $50,000 total to install. The corresponding size adjustment factor for 7 acres is 1.93.
CALCULATE THE RANGE OF THE VALUE OF THE 10-ACRE VACANT LOT ADJUSTED FOR SIZE, ROUNDED TO THE NEAREST $1,000. SHOW YOUR WORK
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