You are looking at a plot of land. One possible development would lead to rent of year one of 175,000 per year with annual expenses of 45,000. There would be growth of rent and expenses of 1.8%. The cost of the construction would be 800,000 and the discount rate would be 11% The second possible development would have rent of year one of 150,000 with annual expenses of 15,000. The growth of rent and expenses would be 1.2% and the discount rate would be 9%. The construction cost would be $1.1 million. How much should you bid on this land?

• A. 613,043
• B. 630,769
• C. 512,478
• D. 569,365
• E. 579,636