Parameter Area Unit

Total Cost Price 0 400,000,000

Total Cost Price 1 350,000,000
Area 16,000 sq ft
Cost Price 0 25,000
Cost Price 1 21,875
Development Ratio 1 5.5
Development Ratio 2 7.8
Selling Price 0 3,500
Selling Price 1 5,000 80,000,000
Development Cost 1 106,000,000
Development Cost 2 150,000,000
Additional Cost 80,000,000
Sunk Cost 500,000
Interest Earned 43,000,000

Approved 60%
Application

Not Approved 40%

Buy Land
No Application
Decision
Invest
 Development Ratio Cost Incurred Revenue Earned
Construction 7.8 580,500,000 624,000,000
Additional Cost 50%
No Construction 7.8 430,500,000 436,800,000
Construction 7.8 500,500,000 624,000,000
No Additional Cost 50%
No Construction 7.8 350,500,000 436,800,000
Construction 5.5 456,500,000 440,000,000
Not Approved 40%
No Construction 5.5 350,500,000 308,000,000
Construction 5.5 456,500,000 440,000,000
o Application
No Construction 5.5 350,500,000 308,000,000
No Construction 350,500,000 393,000,000
 Profit
43,500,000

6,300,000
123,500,000

86,300,000
-16,500,000

-42,500,000
-16,500,000

-42,500,000
42,500,000