calculate the NET PRESENT VALUE for each option and show a cash flow diagram for each option.

Your client has contacted you for advice on his proposed investment in property, he has two options detailed as follows: Option one is for a twin block of apartments with 30 units each Construction cost: 2 contracts each of R5.5 million completed in year 1 and year 2 respectively Maintenance cost: R400, 000 per annum Rental: RZ,500 per unit per month Occupancy rate: 85% Facelift every seven years: R250, 000 Salvage: R2 million each Option two is a shopping mall with 40 units Construction cost: R6.5 million and fully operational at the end of the second year Maintenance cost: R500, 000 per annum Rental: R3,000 per unit per month Occupancy rate: 75% Facelift ten years after construction: R350, 000 Salvage value: R3.5 million Based on Net Present Value, using an interest rate of 6% and a lifecycle of 20 years after construction, advise your client on the option to choose. Present the cash flow diagram for each option