11. You would like to develop an office building. Your analysts forecast that it will cost you $1,000,000 immediately (time 0), and it will cost you $500,000 in one year (time 1). They forecast you can sell the building for $2,400,000 in two years (time 2). If your discount rate is i = 25%, what is the net present value of this investment? 12. What is the IRR of the development project in question 11? (hint: if you are using an ordinary calculator, all you need to do is to solve a quadratic equation). 13*(hard question). You consider developing a rental apartment complex. It will cost you $1000,000 per year for two years (time 0 and time 1). Starting two years from now and forever (time 2 and later), you will be paying $20,000 per year for maintenance and making revenue $152,000 per year. What is the NPV of this project if the interest rate is 6%? Hint: it is a sum of a regular NPV and an infinite annuity. 14. How large was the decline in house prices during the housing bust of 2007-12? Pick the closest number: (1) 10%, (2) 30%, (3) 50%, (4) 75%