The investor-developer would not be comfortable with a 7.8 percent return on cost because the margin for error is too risky. If construction costs are higher or rents are lower than anticipated, the project may not be feasible. The asking price of the project is $2,800,000 and the construction cost per unit is $80,000. The current rent to justify the land acqusivion is $110 per square foot. The weighted average is 900 square feet per unit. Average vacancy and Operating expenses are 5% and 35% of Gross Revenue respectively. Use the following data to rework the calculations in Concent Box 1622 in order to assess the feasibility of the project: Required: a. Based on the foct that the project appears to have 9,360 square feet of surface area in excess of zoning requirements, the developer could make an argument to the planning department for an additional 10 units, 250 units in total, or 25 units per acre, What is the percentage retum on total cost under the revised proposal? is the revised proposal financially feasibie? b. Suppose the developer could build a 240-unit huxury apartment complex with a cost of $83.000 per unit. Given that NOl is 60% of rents. What would such a project have to rent for (per square foot) to make an 8 percent return on total cast? Complete this question by entering your answers in the tabs below. Based on the fact that the project appears to have 9,360 square feet of surface area in excess of toning requirements, the developer could make an argument to the planning department for an additional 10 units, 250 units in total, or 25 units per. acre. What is the percentage retum on total cost under the revised proposal? is the revised proposal financially feasible? Note: Round your percentage answer "Total cost under the revised proposalt to 2 decimat places