From the following information compute Gross Residual Value:

Market rent	Rs 2,000 per sq. ft. per year
Building costs	Rs 1,000 per sq. ft.
Development period	2 years
Letting cost	10% of the first year’s rent
Sale Fee	1% of development value
Professional Fees	5% of all costs
Interest on borrowed money	14%
Market capitalisation rate	10%
Developer’s profit	20% of construction cost.

Additional Information:
Consent has been given to construct a building on a land area of 6,000 sq. ft. with a gross build area of 6,500 sq. ft.

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