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An appraiser is analyzing a vacant parcel of land that is zoned for general business. This...

An appraiser is analyzing a vacant parcel of land that is zoned for general business. This zoning classification allows for almost any business enterprise, including industrial, office, and retail uses. The appraiser believes the following values per acre are accurate:

Possible Use.

Market Value per Acre.

Market Conditions.  

   
Industrial $200,000

Will take at least one year to sell.   
Office $220,000

Will take at least three years to sell
Retail $260,000

Will take at least five years to sell

Discount rates in this market for industrial, office, and retail properties like these are 7%, 8%, and 9%, respectively. What is the highest and best use of the parcel today? Please show your work in order to understand it and being able to reproduce it.

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