Consider an investment in which a developer plans to begin construction, of a building that will cost $1,000,000, in one year if, at that point, rent levels make construction feasible. There is a 50 percent chance that NOI will be $135,000 and a 50 percent chance that NOI will be $81,000. Using the traditional approach, which is similar to the "highest and best use" approach, what will the land value of the property be at the completion of the construction, assuming a cap rate of 10 percent (12 percent discount rate and an NOI growth rate of 2 percent)? What will the land value be using the real options approach