Quarter 1 2 3 Lots per quarter 8 8 8 Sale price per lot $158,000 $165,900 $174,195 Estimated revenue $1,264,000 $1,327,200 $1,393,560 Less estimated expenses Develoment costs $400,000 $400,000 $400,000 Real estate taxes $4,000 $4,000 $4,000 Sales commission $0 $0 $0 Advertising, etc. $0 $0 $0 Entrepreneurial incentive $0 $0 $0 Total expenses $404,000 $404,000 $404,000 Net cash flow 1. 2. 3. Present value Discounted 4. 5. 6. at 12% Present value of land (7