16 The Lotus Point Condo Project will contain both homes and apartments. The site can accommodate up to 10,000 dwelling units. The project must contain a recreation project:

either a swimming–tennis complex or a sailboat marina, but not both. If a marina is built, then the number of homes in the project must be at least triple the number of apartments in the project. A marina will cost $1.2 million, and a swimming–tennis complex will cost $2.8 million. The developers believe that each apartment will yield revenues with an NPV of $48,000, and each home will yield revenues with an NPV of $46,000. Each home (or apartment) costs

$40,000 to build. Formulate an IP to help Lotus Point maximize profits.