Mr Steven Khor had acquired a 4.5-acre prime land with the assistance of a Real Estate Agent in 2013. The fee of the Real Estate Agent was 3% on the transacted price. The land was eventually developed as a commercial center to cater for the strong market demand in the area. The construction started in 2016 and completed in 2018. The void and sale period for the project was anticipated for 6 months. The following data were used for the business center development:

Net lettable area : 70% of gross floor area Gross floor area : 460,000 sq.ft

Estimated rental value per month : RM8.50/sq.ft

Yield : 8% :

Building Cost: RM265/sq.ft

Land cost : RM610/sq.ft

Professional fees : 10%

External works : RM2,400,000

Bank interest : 8% per annum

a) Calculate the Net Development Value (NDV) of the project. (2 marks)

b) Compute the interest on land acquisition cost using compound interest formula. (2 marks)

c) The fund was borrowed equally 2 years of construction period. Calculate the interest for the following costs using simple interest formula:

(i) Building cost (2 marks)

(ii) Professional fees (2 marks)

(iii) External works (2 marks)

d) Calculate the developer's profit as a percentage of the total development cost based on the information provided. (10 marks) e) Discuss the acceptability of the percentage of developer's profit. (5 marks) [Total : 25 marks]