A 70-acre site is on the market for $2,000,000. A developer believes that 125 single family lots can be sold for $60,000 per lot over a three-year period. Marketing and commission costs are estimated to be 8% of sales. Development costs are estimated at $35,000 per acre and will be incurred in year one. Assume taxes to be $50,000 in year one, $25,000 in year two and $15,000 in year three. The "typical" developer's overhead and profit for the area is 22% of retail sales.

Given a discount rate of 15% and annual accounting, what is the indicated value of the raw land?

OK TO USE FINANCIAL CALCULATOR, BUT SHOW STEPS. Thank you.