Use this data to answer questions 8 and 9. Jensen Development Company has the following data for development of a shopping center; gross square feet of 100,000, effective gross income of $25 per sq. ft., with gross full-service leases, operating expenses at $10 per sq. ft., total construction costs of $16 million and a post construction appraised value at a 6% cap rate. The stabilized return on total cost is? A. 7.1% B. 6.0% C. 6.4% D. 9.3%

9. The projected profit on the development is? A. $9,000,000 B. $1,000,000 C. $16,000,000 D. $25,000,000