The following are the details of a real estate investment project and its associated mortgage loan: - The developer purchased the property for $1,000,000 at year 0. - The developer starts to earn annual income from this property at year 1, and the initial net operating income {NOI} is $90,000. - Both the property value and NOI are projected to increase annually by 2 percent. . The property depreciates at a constant annual rate of 2.5 percent, which is based on only 80 percent of the original property value. . The developer purchased this property with a 7'0 percent loan at 5 percent interest, which has an annual payment schedule and amortizes in 20 years. . The developer sells the property at year 5, which incurs a 4 percent selling experse. - The income tax rate is 40 percent. Year 0 1 2 3 4 5 Other 1,000,000 X 1,000,000 >