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Norman spots Doug Tesla, another investor in Ontario income properties at the end of the bar. He asks Doug what he

should do in regard to his project. After listening to the project details, Doug offers to pay Norman a fee today in exchange for the rights to the project. After a moment's thought, Norman decides that he would be willing to transfer the project rights today for a minimum of $8 000 000. Doug loves to speculate on commercial real estate, so Norman believes that Doug would accept this deal at that price.

a) Would Norman be better or worse off if he accepts $8 000 000 from Ford for the project rights rather than investing himself?

b) Would Ford really be willing to pay Norman $8 000 000 for the project rights?


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2020-01-29 (12).png

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