$1.$ A small town has approached you to develop a small amphitheater district with mixed$-$use retail, office, and housing in a contained four$-$block area, about $10$ acres. The town will acquire it at full cost upon completion, estimated resale value of $$96$ million $($the payment you will receive from the city$)$ at the end of four years from contract execution, including land and engineering, planning, and construction. You take on no development projects for less than a $30\%$ annualized return. Before you sign the contract, you obtain soft bids $($ballpark estimates from your most trusted contractors$)$ to see if the total cost will exceed your investment ceiling. What is the most you can spend $($your cost ceiling$)$ on completing this project and still realize a $30\%$ annualized return $($IRR$)?$ Show your work. Assume you are a full equity developer, meaning cash$-$only, no debt. Further assume your costs are staggered as follows:$$ i$.$ Year $1($$$1\mathrm{.}1$ million$)$ for land $($transferred from city$)$ and engineering ii$.$ Year $2(25\%$ of construction estimate$)$ iii.$$ Year $3(50\%$ of construction estimate$)$ iv$.$ Year $4(25\%$ of construction estimate$)$ Start with an assumption of $70\%$ of final sale for your project costs including land and engineering, or $$67,200,000.$ The city is paying for any brokerage and additional transaction fees. Years $1$ through $4$ cash flows occur at end of period, including costs and sale proceeds. $\backslash$$

$96,000,000\backslash$$

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$96,000,000$