SSolve....

2. A construction and development project in Vancouver has estimated construction expenses that start today for $100,000. The expenses increase $50,000 per month after the first expense and go until month 12. At month 13 the construction expense is estimated at $900,000 and then decreases at 3% per month until month 24. In addition, the cost of the land, architect, engineers, and city permits today is $2,800,000. There is also an allowance expense expected to take place at month 12 for $300,000. The project revenues consist of selling the first house at month 11, the second at month 12, and the last two houses 50% more expensive than the previous two during the months 24 and 25. The MARR is 20% compounded semiannually. What should be the price of the houses to meet the MARR of the project? Create cash flow diagram. (10 marks)