Phambili $($Pty$)$ Ltd is a property development company located in Pretoria North, owning several pieces of land in the Dinokeng area, both in residential and farming estates near Roodeplaat Dam. The company's pricing is in American dollars due to its international clientele. Currently, the company seeks expansion opportunities within or near Pretoria. The company recently received an invitation to bid for two properties in Cullinan:

First Property: This property includes $1\mathrm{.}5$ acres of residential land, of which $0\mathrm{.}7$ acres are due to be bought immediately by the local municipality for housing development at a proposed price of $$25,000$ for the $0\mathrm{.}7$ acres. The remaining $0\mathrm{.}8$ acres, which can be resold to a developer, are expected to be valued at $$190,000$ by the end of five years from now.

Second Property: Located in a Country Estate in Cullinan, this property has $160$ acres of land. Local authorities will permit $($will rezone$)$ only $15$ acres for residential housing, which may be released any time within the next four years. The remaining $145$ acres are not available for residential development. To secure the land, Phambili $($Pty$)$ Ltd must agree to pay $$1,400,000$ immediately; otherwise, the property will go on auction, with an estimated possible offer from a local businessman of $$1,600,000$ and a reserve price of $$900,000.$

Additional Information:

The specific $15$ acres for redevelopment of Property $2$ are yet to be identified, with the process to be completed by the end of year $4.$ The remaining$145$ acres can then only be re$-$sold at estimated Agricultural land prices of $$20,000$ per acre.

Market Values:

Land rezoned for residential and available for development to remain constant over the next five years at $$200,000$ per acre.

Land $($residential or agricultural$)$ maintenance cost per acre: $$2,500$ per annum incurred at the end of each year.

Cost of capital$/$ Discount rate for Phambili $($Pty$)$ Ltd: $19\%$ per annum.

Agricultural land can be leased to farmers at $$300$ per acre per annum, payable at the end of each year.

Your goal is to determine the current bid price for each of the two properties, considering the present values of future cash flows. Use the given data to calculate the suitable bid prices. Make sure to justify your calculations and assumptions. $(19)$

Hint: Start by determining and setting out the future cash inflows from each property, then discount these cash flows to their present value using the cost of capital rate for Phambili $($Pty$)$ Ltd$.$ Include maintenance costs and potential resale value in your calculations.