An undeveloped piece of property can be developed for $60,000 in one year. At that time, it will either be worth $220,000 or $40,000. The interest rate is 5%. If the property cannot be developed for a profit in the down economy, the property can be sold for $5000.
A similar property that is developed now is valued at $190,000. What should be the current value of the undeveloped land?