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You have a piece of land you are considering developing. You will either build a residential apartment complex or a shopping mall. The estimated cash

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You have a piece of land you are considering developing. You will either build a residential apartment complex or a shopping mall. The estimated cash flows for the two projects are illustrated below. For simplicity, we will assume that each development only has a five year life. Year Park Place Apartments Boardwalk Mall 0 -$17,000,000 -$17,000,000 1 8,000,000 2,000,000 2 7,000,000 5,000,000 3 5,000,000 9,000,000 4 3,000,000 9,500,000 5 2,500,000 2,500,000 At what rate of return are you indifferent between these two developments

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