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A real estate developer is evaluating a 40-unit apartmentdevelopment. The expected average occupancy is 90%. Cost of land:$1,200,000 Construction: $$4,800,000 Project Life: 25 yearsMaintenance: $100 per unit per year (regardless of weather a unitis occupied). Annual insurance and property taxes: $400,000Required return: 12% per year (0.9489% per month) Assume that thebuilding will have NO salvage value at the end of 25 years, BUT theland will appreciate at a rate of 5% per year. Determine the totalminimum monthly rent (all units combined) that should be charged,given the required return. (Round your answer to the nearestdollar. Do not enter the $ symbol or use commas.)
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