4) You plan to build a new plant at an estimated cost of $10 million. You set up a construction loan at 8%, with the interest rolling into the balance. At the completion of the plant, the entire amount will convert into a conventional mortgage at 6% over 30 years. You expect the plant to be built over the course of 6 months, with the expenses to be incurred as follows: Purchase of land, $1 million, January 2015 Frame in the building. $1 million, January 2015 Exterior walls, $3 million, February 2015 Electrical and Plumbing, $2 million ratably over February and March 2015 Sheetrock and finishing $2 million ratably over April and May. Even though you set up the loan for $10 million, hopefully you will not need the extra $1 million. Given the above information, estimate the amount of the final mortgage. Assume interest is accrued monthly, using an average daily balance