Cash flow of the next scenario and present worth analysis with an interest rate of 3%.

INCOME/EXPENSES

Scenario 1:

Expenses:

• The Civil Engineer gets a $105,000 fee. (60% on year 1) and (40% on year 2).
• The site work costs $800,000, to be paid on year 2.
• The Architectural Engineer gets a $2,000,000 for the design. (60% on year 2) and (40% on year 3)
• The additional 2500 squared-foot office construction costs $200,000, to be paid on year 3.
• The building construction costs $49,000,000 to be paid on year 3.
• The retrofit for the building costs $600,000 to be paid on year 9.
• The pavement rehabilitation costs $180,000 to be paid on years 9, 14,19.
• The advertisement for leasing costs $1,500 annually on years 2, 3, and 4.
• The landscape maintenance costs $3000 annually between the years 3 thru 20.
• The snow removal costs $1,200 annually between the years 3 thru 20.
• The insurance costs $10,000 annually between the years 3 thru 20.
• The general building maintenance costs $1,000,000 annually between the years 3 thru 20.
• The electricity costs $450,000 annually between the years 3 thru 20.
• The sewer costs $2,500 annually between the years 3 thru 20.
• The water costs $1,000 annually between the years 3 thru 20.
• The fire suppression costs $600 annually between the years 3 thru 20.
• The loan payment is $2,300,000 annually between the years 1 thru 20.

Income:

• The loan income is a total of $40,500,000 on year 1.
• The lease income is $3,000,000 annually between the years 4 thru 9.
• The rental income on the other side during the lease is $2,400,000 annually between the years 4 thru 9.
• The rental income is $4,700,000 annually between the years 10 thru 20.