Question: A local developer is considering building a 30-unit apartment complex in Seri Iskandar. Because of the long-term growth potential of the area, it is felt

A local developer is considering building a 30-unit apartment complex in

A local developer is considering building a 30-unit apartment complex in Seri Iskandar. Because of the long-term growth potential of the area, it is felt that the company could average 88% of full occupancy for the complex each year. The land investment cost is $70,000 and the building investment cost is $250,000. The upkeep expense per unit per month is $40. Property taxes and insurance per year is 10% of total initial investment. The company MARR is 12%. The estimated rental is $ 400 per month for the coming 20-years period. a Estimate the annual revenues and expenses of this investment. [7 marks] b. Sketch the annual cash flow diagram for this investment [6 marks] C. Evaluate if the investment is desired [7 marks]

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