Question: A real estate developer is able to obtain a property at its market price of $1,500,000. The developer's calculated investment value is $1,500,000, but the

A real estate developer is able to obtain a property at its market price of $1,500,000. The developer's calculated investment value is $1,500,000, but the government has incentivized the developer, through tax incentives to the value of $250,000, to develop low-cost housing.

If the real estate developer develops the low-cost housing, Calculate the NPV.

A real estate developer is able to obtain a property at its market price of $1,500,000. The developer's calculated investment value is $1,200,000, but due to the spillover effect of a nearby theme park that has just started development, the developer estimates that they can add an additional $900,000 to their investment value. Calculate the NPV.

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