Question

Month Construction Draw Sales Revenue 1 $200,000 2 150,000 3 75,000 4 25,000 600,000 Total 450,000...

Month Construction Draw Sales Revenue
1 $200,000
2 150,000
3 75,000
4 25,000 600,000
Total 450,000 600,000
Present Value @ 12%

Consider the table above, which summarizes monthly construction draws and sales revenues. What is the percent of lot sales revenue that needs to be used to repay the loan? Hint: Calculate the present value using a 12% per year discount rate. Please Show Work (NO EXCEL)

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