Your client, Apex Commercial Properties, is developing a $40$ unit apartment building. They plan to purchase the land

for $$1\mathrm{.}25M$ on January $2,2023.$ Zoning, permitting, and construction is expected to take $18$ months, so the

occupancy of the building is anticipated to begin on July $1,2024.$ The total cost of zoning, permitting, and

construction is expected to be approximately $$3\mathrm{.}5M,$ with those costs assumed to be incurred ratably over $18$ months

beginning January $2,2023.$ Apex is assuming that the average rental per apartment will be $$1,000$ per month with

$95\%$ occupancy. The building has an expected life of $20$ years with no residual value at the end of its useful life. The

company cost of capital is $7\%.$ Apex has asked you to analyze the apartment building project and provide an

assessment of the NPV of the project.