Mr. Archer holds a $500,000 CD apart from his other business funds in case of an emergency. He has already drawn approximately $280,000 on a $500,000 line of credit. This draw costs approximately $992 per month at 4.25%. The rezoning and Site Plan process for Airport Business Park was aggravating because of the expense, delays, and the belief that he might miss the market by the time he had product available. Tech Center One was a dream come true if only he could get the project financed. Frustration was mounting. The office overhead for his seven-person firm was running at $40,000 per month. Would he ever benefit by carrying all this overhead? How would he do the work without the people? Would he be able to accomplish his goals? The ABC DEVELOPMENT, INC. company currently owns or controls the following asset: OAKRIDGE APARTMENTS All twelve apartments within the property are currently leased and ABC anticipates no vacancies over the next two years. A 10% credit and collection allowance has been experienced historically because of the high credit risk of the tenants. Operating expenses have run at 42% of the gross rents over the last two years. ABC receives a management fee of 4% of the gross rents and it has been included in the operating expense history. Built in 2005, rehabbed in 2015 Rents 6 one-bedroom units of 800 sf @ $1.80 per square foot 6 two-bedroom units of 1,000 sf @ $1.70 per square foot Mortgage amount on the property placed in 2015 for rehab was $384,000 for a 10-year term, 25- year amortization, at an 8% rate. Real estate taxes of $15,680 and insurance of $2,375 are included in the operating expenses as calculated above. Mortgage amount was full value as determined in 2015. Land was 20% of value at the time of rehab in 2015. Please answer the fllowing: A. Determine ABCs monthly cash flow for the balance of 2022, 2023 and 2024, assuming all the projects can move forward, if you believe they should. B. What should Mr. Archer do with each of the projects? Provide analytical backup for your conclusions. Sale, refinance, delay, completion, and abandonment are all possibilities. C. Recommend how Mr. Archer should move forward to close on the Beltway and Airport projects if you believe they are feasible. D. How could Mr. Archer bring in additional equity to the projects? Recommend any legal and financial structures you feel appropriate. Should title to the projects remain in the S Corp? E. Describe potential weaknesses in the Company as it moves into the future. F. Generally, advise Mr. Archer how he should handle the Company and the various projects moving into the future.

G. Based on the limited information contained on the projects, lines of credit and cash balances, prepare a draft balance sheet and net worth. Is his net worth sufficient to do the projects contemplated?