Business, 15.11.2019 21:31 sarahholt517
Suppose the most productive use of a particular site is as a manufacturing plant that will generate revenues of $12,000,000 per year with raw material costs and operating expenses (other than net rent) of $7,000,000 per year, and construction costs (for the plant and equipment) that can be paid for with a perpetual loan with interest of $3,000,000 per year. according to the residual theory, how much is this site worth in terms of annual land rent?
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Suppose the most productive use of a particular site is as a manufacturing plant that will generate...
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