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4. You are planning to buy an undeveloped land in Vancouver to build four townhouses. The price of the land is $2,800,000. Use a project Pro-Forma based on the following information: The revenues and expenses are provided in the Pro-Forma (excel file attached). The project duration is four months, the interest rate for the bank loan, if any, is 6% compounded monthly. The equity (cash) that the developer has to start this project is $ 2,000,000. The brokers fee is $30,000 and is due at the beginning of the project (month 0). The commission for any unit sold is 3.5%. a) Determine the Profit without time value of money. (5 Marks). b) Determine the Return on Cost (ROC) and Return on Equity (ROE). c) Determine the Net Present Value (NPV) using a Minimum Attractive Rate of Return (MARR) of 18% compounded monthly. Create a cash flow diagram for the calculation of NPV. (4 Marks). 4. You are planning to buy an undeveloped land in Vancouver to build four townhouses. The price of the land is $2,800,000. Use a project Pro-Forma based on the following information: The revenues and expenses are provided in the Pro-Forma (excel file attached). The project duration is four months, the interest rate for the bank loan, if any, is 6% compounded monthly. The equity (cash) that the developer has to start this project is $ 2,000,000. The brokers fee is $30,000 and is due at the beginning of the project (month 0). The commission for any unit sold is 3.5%. a) Determine the Profit without time value of money. (5 Marks). b) Determine the Return on Cost (ROC) and Return on Equity (ROE). c) Determine the Net Present Value (NPV) using a Minimum Attractive Rate of Return (MARR) of 18% compounded monthly. Create a cash flow diagram for the calculation of NPV. (4 Marks)

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