Hi Professor, Could you please help me with the calculation for the question below. I wasn't able to get the 11.2% value that was considered the right answer when solving for this. I used the example given in 16-1. NOI = (245*900*2.10*12) - vacancy * operating = 3,333,960 Total Cost (93000*245+3200000) 25,985,000 You are contemplating developing a 245 unit apartment complex (average unit size 900 sq. ft.) and want to do a quick feasibility. You expect market rents to be about $2.10 p.s.f. (monthly). Assume the following: 5% vacancy factor; operating costs at 35% of EGI; Land $3,200,000; Hard costs: $93,000/unit; Soft costs: $12,000/unit; Lease-up and carry costs: $7,000/unit. Given all these assumptions, construct a quick proforma and estimate the return on investment (NOI/Total Cost)