1. Given the land value situation above, when will it not be economical not to invest in the land?
1. When the sale price of the land exceeds 1.2 million.
2. When the RRoR is equal to 20% or more.
2. What other factors need to be considered in this decision?
1. When there is a negative outcome in all or some of the conditions that make some investment activities have a positive NPV discussed earlier (such as):
1. Buyer preferences for established brand names.
2. Ownership or control of distribution system.
3. Patent control of product design or production technique.
4. Exclusive ownership of superior natural resource deposits.
5. Inability for new firms to acquire necessary factors of production.
6. Superior access to financial resources at lower costs.
7. Economies of large scale production & distribution due to capital-intensive production process or high initial startup costs.
2. Any other reasonable arguments.