You have found vacant land for sale that you believe would be a good site for an apartment

building. You want to put in a bid, and as you believe that this is a highly desirable site for

other developers, you want to ensure that your bid is the maximum possible. The following

are your projections for this development: Gross Building Area is $180,000$ square feet.

$$ can build a total of $150$ units

$$ Development will take $5$ months to build and sell

$$ Estimated sale price of each unit will be R$1,800,000$

$$ Closing costs will be $4\%$ of gross value upon completion

$$ Hard costs will be R$450$ per square foot of gross buildable area

$$ Soft costs $($including property tax, consulting fees, and legal fees$)$ will be $15\%$ of hard costs

$$ Cash for hard and soft costs will be advanced in $5$ equal advances at the beginning of each

month in the development process. Interest will accrue at a rate of j$12=11\%$ with all

principal and interest due

Calculate the Development financing cost if the Developer borrows soft and hard costs from

the Bank.

$4.$ The expected market return is $15$ percent. The risk$-$free rate of return is $8$ percent, and BC

Co$.$ has a beta of $1\mathrm{.}3.$ Their required rate of return is$?$