Subdivision Development [2918]

A developer can buy a piece of land and break it into 20 lots.  The development cost is $15,000 per lot and must be paid immediately.  If he can sell 10 lots for $20,000 the first year, 5 lots for $22,000 the second year, and 5 lots for $25,000 the third year; what is the maximum amount he should be for t he raw land.  Assume a discount rate of $8%.  (In a subdivision development problem, the developer’s profit is assumed to be in the sale of the lot and not considered otherwise)