Given:

Loan needed: $$30,375,000$

Interest: $6\%,$ compounded annually over a $20$ vear period

$$35$ per square foot of rental space $(175,000sf)$

M&O $($maintenance and operation$)$: $3\%$ of total cost of project

Estimate Costs for Project:

Land $3,500,000$

Construction Company $1$ consulting fee $50,500$

Construction Company $2$ consulting fee $40,000$

Architect fee $110,000$

Permitting cost $27,000$

Design & consulting engineer fee $170,000$

Grading and site work sub $2,420,000$

Construction of shopping facility $20,800,000$

Construction of parking lot $2,375,000$

Installation of utilities by sub $1,700,000$

Installation of electrical reticulation by sub $600,000$

Landscaping sub $422,000$

Allowance for fees of loans and interests $5,660,500$

Total $37,875,000$

Find:

Gross annual revenue

Annual Maintenance Costs

Net Annual Revenue

Estimated Annual Debt Service

Estimated Annual Profit

Net Present Value of the client investment, if the discount rate $=10\%$

Internal Rate of Return for the project investment