A real estate developer will build a small office complex in Montreal. The project has a total budget of $1,300,000 including interest estimated at $15,000. The expected cash flows are as follows (assume each cash flow occurs at the end of the quarter):

Quarter 1:	Land purchase:	$200,000
	Soft costs:	$100,000
	Hard costs:	$200,000

Quarter 2:	Soft costs:	$100,000
	Hard costs:	$200,000

Quarter 3:	Hard costs:	$185,000

Quarter 4:	Hard costs:	$300,000

The lender is willing to provide a construction loan with a maximum LTC of 70% including interest. The interest rate is expected to be 5% per year throughout the development process and will be capitalized quarterly.

b) If the stabilized NOI at the end of Quarter 4 is $120,000 and comparable cap rates are 8%, calculate the amount the equity investors could withdraw from the project if they secure a 5-year mortgage with an interest rate of 5%, an amortization period of 15 years, a maximum LTV of 75% and a minimum DSCR of 1.25.