A developer increased the value of two combined parcels from $20,000 to what new value?

The increase in value of the two combined parcels from $20,000 to $25,000 reflects a positive development outcome resulting from improvements or enhanced usability of the land. When a developer successfully elevates the value of a property, it can be attributed to various factors such as better infrastructure, zoning changes, or the implementation of attractive features that appeal to potential buyers or investors.

The value increase of $5,000 indicates that the developer added perceived worth to the parcels, making them more desirable and commercially viable. When analyzing property values, it's common for developers to aim for returns that surpass initial valuations, which is vital in real estate investment and development. Thus, while the original value was $20,000, the new value of $25,000 demonstrates a successful enhancement of the property value, making it the most appropriate answer.