Conduct the following assessment of an apartment project investment opportunity. The project will require development and operation of the building for 25 years. It is expected to have 315 units that will rent for an average of $1,450/month per unit. It is expected that 94% of the units will be rented annually (i.e. 94% occupancy). The cost and development of the project is $30 million and occurs in year 1; operating costs are $1.20 million per year. Assume the rent, operating costs, and annual occupancy will remain constant.

a)Draw the cash flow diagram for the project

b)find the NPV of the project if r = 12%,

c)decide whether you should recommend this project as an investment opportunity, and

d)assuming you only had $10 million in equity of the $30 million required to invest in the project, explain how you would arrange the financing for the project and why you would use this financing structure.