Q4: The Dallas Development Corporation (DDC) is considering the purchase of an apartment project for $100,000. After the purchase, DDC is planning to remodel the apartments in the next 5 years and sell the remodeled project out after completion. (Now is the end of year 0, or beginning of year 1) 1. After the apartment project is remodeled at the end of year 5, it could generate $10,000 rent income in year 6, and the rent will grow at the annual rate of 2% from then on. DDC estimates the market discount rate at the end of year 5 will be 7%, what will be the sale price of this apartment at that time? 2. In the remodeling period, DDC estimates the annual cost is $10,000 (occurring at the end of each year), what will be the internal rate of return of this investment compounded annually? If DDC insists on an 8% return compounded annually on its investment, is this a good investment? 3. To boost the return of this investment, DDC decides to lease out the finished apartments starting from year 3. That will bring rent income of $3,000, $5,000 and $7,000 during year 3-5. With this new plan, what will be the internal rate of return of this investment compounded annually? Is this a good investment?