Estimate the after tax NPV of the project.

RETAIL SHOPPING CENTER Building Size 125,000 net leasable square feet Land Cost $1,500,000 Construction cost per square foot $43 Rent per square foot of leasable area $9.50 per square foot of leasable area in year 1 increasing at 6% per annum thereafter Common area maintenance charges (CAMS) Each tenant pays 85% of their pro-rata share of all expenses and taxes incurred based on the proportion of net leasable square footage to all rentable area Real estate taxes $1.29 per square foot of leasable area, increasing at 5.5% annually thereafter Vacancy 12% in year 1, 15% in year 2, 13% in year 3, and 3% in year 4 Operating expenses $3.25 per square foot of leasable area in year 1, growing 6% annually Depreciation 39 yea rs Mortgage information 75% loan to value ratio, 8.5% interest for 25 years, annual payments Lender required Debt Service Coverage Ratio 1.2 Sales information Property will be sold at EOY4 for ten times NOI Selling expenses 4% Before tax required rate of return on equity 6% Investor's marginal income tax rate 3 Capital gains tax 20% Depreciation recapture rate 25% Exit Cap Rate 14% Preferred Return 8% Investor ISponsor Contribution 10% Investor Group Equity Contribution 90%