ou are interested in investing in a new construction project. You come across a study performed on buildings of a similar nature in a similar area. The study indicates that certain cost savings are obtained over a period of 20 years if green improvements to the value of 2% of the total cost to construct a building are made.

	Net present value cost (per square metre)
Rental income	1,500
Maintenance costs	300
Cost savings:
Water bill	4.5
Electricity	10.5
Maintenance	52

The building you are interested in is 1,500m² and will cost 1,000 per square metre to construct without any green improvements. What is the net present value of an investment in this building with green improvements

Select one:

a. 169,500

b. 400,500

c. 370,500

d. 270,000