Question: Across a twelve year development cycle, in what year would the development be likely to generate the highest amount of positive cash flow for the

Across a twelve year development cycle, in what year would the development be likely to generate the highest amount of positive cash flow for the developer, and why?

Select one:

a. In year 12, because that is when the property would be sold.

b. In year 3, because that is when construction on the property would be completely finished.

c. In year 1, because that is when the intervals would be the most popular.

d. In year 5, because that is when the greatest number of unsold units would be available for rental.

e. In year 8, because that is when most of the interest rate spread, and the loan residual payments would be paid to the developer.

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