Part $2$: After realizing that I already own the site and that I$$m financing the building$$s construction by myself, my financial advisor wonders if I$$d be better off delaying construction by a year because one year from now, there is equal chance that the Canadian economy will either increase or decrease its GDP growth by $5\%.$ He points out that delaying construction for a year would allow me to make a clearer decision on whether to develop or not, as a recession would mean the building would effectively earn no net revenue for the foreseeable future but a realization of higher growth would significantly increase expected annual revenue. Using the estimate of revenue growth, my financial advisor forecasts the following values for annual net revenue: $$30,902,400$ in year $3,$ $$32,262,105$ at year $4,$ and $$33,681,638\mathrm{.}25$ at year $5.$ I realize however, that delaying will lose the $$14,800,000$ rental revenue earned in the building$$s first year of operation. $1.$ What is the calculation of the present value of the project if I delay construction so that the building is finished in year two rather than year one. $2.$ Prior to beginning the construction at year $1,$ what would I do in each alternative case if the Canadian economy entered a recession in year one and the Canadian economy had an annual increase in its GPD of $5\%$ at year one? $3.$ Should I invest and start developing today or wait for a year? $4.$ If$,$ from the perspective of today, the expected revenue from the project beginning in year $3$ and continuing in every subsequent year is the same no matter which decision I make, why does the second alternative have a higher present value today than the former?