$1$c$)$ Your task: Calculate the Net Present Value $($NPV$)$ for the following two scenarios

related to your Assignment $1$ and $2$ Co$-$working office development project. $(5\%=5$ Marks$)$

Scenario $1)$

Assumptions: Rental income: Year $1)$ $$150,000$; Year $2)$ $$200,000$; Year $3)$ $$250,000$;

Year $4)$ $$300,000.$ The investment cost incurred included: Construction cost $$600,000$;

Operation costs $$100,000$; Management costs $$50,000.$ The assumed discount rate is

$6\%.$

Scenario $2)$

Assumptions: Year$1)$ $$150,000$; Year $2)$ $$200,000$; Year $3)$ $$250,000$; Year $4)$ $$300,000.$

The investment cost incurred included: Construction cost $$600,000$; Operation costs

$$100,000$; Management costs $$50,000.$ The assumed discount rate is $8\%.$

Present your two calculations in table format $($see week $8$ Tutorial workshop example$).$

Comment on your results for Scenario $1$ and Scenario $2.$ Make a recommendation on the

target rental income for year $5$ for each scenario in order to achieve a present value sum

from year $1$ to year $5$ of minimum $$1,000,000.$ The assumed discount rates remain at $6\%$

and $8\%$ respectively for each scenario.