A company is considering of land that could be developed into a class A office project. At the present time, the company believes that the site could support a 300,000 rentable square foot project with average rents of $ 20 per square foot and operating expenses equal to 40% of that amount. It also expects rents to grow at 3% indefinitely and believes that the coompany should earn a 12% return (r) on investment. The building would cost $100 per square foot to build. Required: a) What would the estimated property value and land value under the above assumptions. b) Suppose the land owner is asking for $12000000 for the land. Under the assumptions in part (a) would this project be feasible? c) if the land must be acquired for $ 12000000, returning to the assumptions in (a), how much of change in the following would have to occur to make the project feasible? ( Consider each item one at a time and hold all other variables constant.) i) Expected return on investment (r) ii) Expected growth in cash flows iii) Building cost iv) Rents