E. Income Producing Properties (8 points) A developer plans to start construction of a building in one year if at the point rent levels make construction feasible. At that time the building will cost $1,500,000 to construct. During the first year after construction would take place, there is a 70% chance that NOI will be $185,000 and a 30% chand that NOI will be $75,000. In either case, NOI would be expected to increase at 2% per year after year one. How much should the developer be willing to pay for the land to get a 11% ROI