A real estate developer specializes in residential apartments. A complex of 20 run- down apartments has recently come on the market for $1,524,500. The developer predicts that after remodeling, the 12 one-bedroom units will rent for $875 per month and the 8 two- bedroom apartments for $1,250. The developer budgets 20% of the rental fees for repairs and maintenance. It should be 30 years before the apartments need remolding again, if the work is done well, remodeling costs are $25,000 per apartment. Both purchase price and remodeling costs qualify as 27.5-year MACRS property. Assume that the MACRS schedule assigns an equal amount of depreciation to each of the first 27 years and one-half year to year 28. The developer does not believe he/she will keep the apartment complex for its entire 30-year life. Most likely the developer will sell it just after the end of the tenth year. His/her predicted sale price is $4,600,000. The developers after-tax required rate of return is 10%, and the tax rate is 35%. Should the developer buy the apartment complex? What is the after-tax NPV? Ignore tax complications, such as capital gains.