A developer plans to start construction of a building in one year if at that point rent levels make construction feasible. At

that time the building will cost $$1,260,000$ to construct. During the first year after construction would take place, there is

a $60$ percent chance that $N\frac{O}{?}$ will be $$169,500$ and a $40$ percent chance that the $N\frac{O}{?}$ will be $$85,400.$ In either case,

$N\frac{O}{?}$ would be expected to increase at $2$ percent per year after the first year.

Required:

How much should the developer be willing to pay for the land if he wants a $12$ percent rate of return? $($Round your

answer to the nearest whole dollar amount.$)$

Answer is complete but not entirely