Determine the Net Rental Income and estimate the market value of the property using the Income Approach. Assume, state and adopt any variables necessary to enable arrive at your answer. you (8 Marks) b) "The Cost Method of valuation is a method of last resort". Briefly comment on this statement and indicate which of the valuation methods is the most appropriate to adopt for valuation for the purpose of the sale of a commercial property assuming there is ample evidence or comparable data. (12 Marks) Answer on separate answer sheet Q8 State Housing Company (SHC) wishes to purchase 1.5 ha of freehold land in good residential neighbourhood of Airport East in Accra at a price of GHC 4,500,000.00. Planning permission will be available to subdivide the land and erect 31 detached: two-storey houses on the land. The estimated cost for each house excluding professional design fees is GH1,000,000.00. The total development period from planning through construction to disposal will take four years including the construction period of 2 years. Similarly, properties in the neighbourhood have recently been sold for GH2,500,000.00 each, and the current going rents in the same neighbourhood averages GH20,000.00 per month per unit. SHC is happy with 16 per cent return on capital and a developer's profit of 20 per cent. Making any assumptions you consider necessary: Prepare a development appraisal to advice SHC to take a decision on the viability of the proposed development and express an expert opinion whether or not the houses should be let or sold outright. b) Assuming SHC is yet to negotiate, on the price of land, prepare a residual valuation to advise SHC on a reasonable price to pay for the land. Assume and state any variable necessary to enable you arrive at your answer this is let tenently terms. (20 Marks) Answer on separate answer sheet