Vertex Properties is assessing the acquisition of an undeveloped land parcel currently zoned for agriculture. Once acquired, the firm will explore commercial rezoning options, focusing on retall or office development. The market analysis outlines potential development scenarios as follows: Rentable square feet Rent per square foot Operating expense ratio Avg. growth in NOI per annum Required return (r) Total construction cost per square foot Retail 92,009 $26 40% 4.2% 12% $83 The NOI from each project is $Rentable Sqft x ($Rent Per Sqft x (1 - OpExpense Ratio%)). Office 103,299 $21 54% 4.3% 15% $92 Calculate the difference between the net present values of the retail project and the office project: NPVRefail - NPVoffice- Note: The answer could be positive or negative.