The possibility of making another loan to ms brown

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Ms. Brown purchased a property consisting of one acre of land and a building for $100,000 five years ago. She obtained an $80,000 mortgage loan from ABC Bank at that time. The building was very old and Ms. Brown has just had it torn down.

She now wants to build a new building. Ms. Brown hopes to finance construction with ABC Bank and will call them soon to discuss financing the new project.

How will ABC Bank evaluate the possibility of making another loan to Ms. Brown?

Reference no: EM131327453

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