ations. 3. Develop a cash flow diagram, from a developer's perspective, for developing a parcel of land into residential housing lots. The developer purchases the land for $500,000 in year 0. The cost of adding the infrastructure (roads, sewer, etc.) is $2.5 million. The project will be divided into thre construction phases: $1.5 million will be spent on construction in year 0, $0.5 million in year 3, and $0.5 million in year 8. Lots are projected to sell at a steady rate of 15 lots per year for 10 years, at a cost of $50,000 per lot (equal to $750,000 each year). 4. Determine the net present value (NPV) of the development in problem 3 assuming an interest rate of 6%. act affection