A developer plans to start construction of a building in one

year if at that point rent levels make construction feasible. At

that time the building will cost $$1,340,000$ to construct.

During the first year after construction would take place,

there is a $60$ percent chance that $N\frac{O}{?}$ will be $$175,500$ and

a $40$ percent chance that the $N\frac{O}{?}$ will be $$88,600.$ In either

case, $N\frac{O}{?}$ would be expected to increase at $2$ percent per

year after the first year.

Required:

How much should the developer be willing to pay for the

land if he wants a $12$ percent rate of return? $($Round your

answer to the nearest whole dollar amount.$)$

Amount payable by developer