1. Windsor wants to encourage a research firm to locate in the community. The firm would be a non-profit organization and therefore would not pay taxes. Another community has offered to provide a $10 million, 20 year 5 percent loan to be repaid in equal annual installments of $802,426. Otherwise, the research firm would have to pay 8 percent interest on its financing. Instead of offering low-cost financing, Windsor may offer free land. How much must the land be worth for the value of Windsor’s incentive package to be the same as that of the competing city?
Get Answers For Free
Most questions answered within 1 hours.