Use the information from the development project above (Physical Feasibility Question). Assume that the cost of construction for this project is $162,000 per apartment plus the asking price of $4,200,000 for the land. The rent at completion in this area is expected to be equal to 1.41. S/sqft/month and the vacancy rates are equal to 4% of the PGI. The operating expenses are equal to 30% of the Effective Gross income (EGI) and CAPEX is 5% of the EGI. At completion you can sell the project at a 6.9% Cap Rate. The rent growth is 2.5%. Assume all the construction cost and land cost are paid upfront (Year 0 ) and that you sell the property one year after (Year 1). What is the NPV of this project assuming it is funded only with equity: (6 points) Hint: Use Cap Rate plus rent growth as the discount rate. $338,343$471,965$718,819$1,960,271 $.137,123$6,454,122