Pricing and Financial Management The Smith Hauling Company contracted with construction firms to haul debris away...
Imagine you work for a real estate developer. Three years ago, the developer spent $50 million on a plot of land, which is now valued at $60 million. However, the building project has been held up in red tape until now, and the company has paid $3 million in interest on its initial loans. Three years ago they thought they could build 100 condos for a total of $30 million and sell them for a total of $100 million. Now,...