Each Parcel of Land in a New Development Is Selling

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