Land costs £ 25,000,000

Cost of each apartment £ 160,000

Sale price of each apartment £ 250,000
Proportion of apartments sold 100%
Risk discount rate 10%

Month Apartments built

1 10
2 10
3 10
4 10
5 10
6 10
7 10
8 10
9 10
10 10
11 10
12 10
13 10
14 10
15 10
16 10
17 10
18 10
19 10
20 10
21 10
22 10
23 10
24 10
25 10
26 10
27 10
28 10
29 10
30 10
31 10
32 10
33 10
34 10
35 10
36 10
37 10
38 10
39 10
40 10
41 10
42 10
43 10
44 10
45 10
46 10
47 10
48 10
49 10
50 10
51 10
52 10
53 10
54 10
55 10
56 10
57 10
58 10
59 10
60 10
61 0
62 0
63 0
64 0
65 0
66 0
67 0
68 0
69 0
70 0
71 0
72 0
 Flats built
at start of
Land costs £ 25,000,000 Month PV Factor quarter
Cost of each apartment £ 160,000 0 1
Sale price of each apartment £ 250,000 1 0.992089 10
Proportion of apartments sold 100% 2 0.98424 10
Risk discount rate 10% 3 0.976454 10
4 0.968729 10
5 0.961066 10
6 0.953463 10
7 0.94592 10
8 0.938436 10
9 0.931012 10
10 0.923647 10
11 0.91634 10
12 0.909091 10
13 0.901899 10
14 0.894764 10
15 0.887686 10
16 0.880663 10
17 0.873696 10
18 0.866784 10
19 0.859927 10
20 0.853124 10
21 0.846375 10
22 0.839679 10
23 0.833036 10
24 0.826446 10
25 0.819908 10
26 0.813422 10
27 0.806987 10
28 0.800603 10
29 0.794269 10
30 0.787986 10
31 0.781752 10
32 0.775567 10
33 0.769432 10
34 0.763345 10
35 0.757306 10
36 0.751315 10
37 0.745371 10
38 0.739474 10
39 0.733624 10
40 0.727821 10
 41 0.722063 10
42 0.716351 10
43 0.710683 10
44 0.705061 10
45 0.699483 10
46 0.69395 10
47 0.68846 10
48 0.683013 10
49 0.67761 10
50 0.672249 10
51 0.666931 10
52 0.661655 10
53 0.656421 10
54 0.651228 10
55 0.646076 10
56 0.640965 10
57 0.635894 10
58 0.630863 10
59 0.625873 10
60 0.620921 10
61 0.616009 0
62 0.611136 0
63 0.606301 0
64 0.601505 0
65 0.596746 0
66 0.592025 0
67 0.587342 0
68 0.582695 0
69 0.578085 0
Total
[2]
 Flats sold
at end of
Land costs Building costs PV Costs month Sales income PV Income
£ 25,000,000 £ 25,000,000
£ 1,600,000 £ 1,600,000
£ 1,600,000 £ 1,587,342
£ 1,600,000 £ 1,574,785 0 £ - £ -
£ 1,600,000 £ 1,562,327 10 £ 2,500,000 £ 2,421,823
£ 1,600,000 £ 1,549,967 10 £ 2,500,000 £ 2,402,664
£ 1,600,000 £ 1,537,705 10 £ 2,500,000 £ 2,383,656
£ 1,600,000 £ 1,525,540 10 £ 2,500,000 £ 2,364,799
£ 1,600,000 £ 1,513,472 10 £ 2,500,000 £ 2,346,091
£ 1,600,000 £ 1,501,498 10 £ 2,500,000 £ 2,327,531
£ 1,600,000 £ 1,489,620 10 £ 2,500,000 £ 2,309,118
£ 1,600,000 £ 1,477,835 10 £ 2,500,000 £ 2,290,850
£ 1,600,000 £ 1,466,144 10 £ 2,500,000 £ 2,272,727
£ 1,600,000 £ 1,454,545 10 £ 2,500,000 £ 2,254,748
£ 1,600,000 £ 1,443,038 10 £ 2,500,000 £ 2,236,910
£ 1,600,000 £ 1,431,623 10 £ 2,500,000 £ 2,219,214
£ 1,600,000 £ 1,420,297 10 £ 2,500,000 £ 2,201,658
£ 1,600,000 £ 1,409,061 10 £ 2,500,000 £ 2,184,240
£ 1,600,000 £ 1,397,914 10 £ 2,500,000 £ 2,166,960
£ 1,600,000 £ 1,386,855 10 £ 2,500,000 £ 2,149,817
£ 1,600,000 £ 1,375,883 10 £ 2,500,000 £ 2,132,810
£ 1,600,000 £ 1,364,998 10 £ 2,500,000 £ 2,115,937
£ 1,600,000 £ 1,354,200 10 £ 2,500,000 £ 2,099,198
£ 1,600,000 £ 1,343,487 10 £ 2,500,000 £ 2,082,591
£ 1,600,000 £ 1,332,858 10 £ 2,500,000 £ 2,066,116
£ 1,600,000 £ 1,322,314 10 £ 2,500,000 £ 2,049,771
£ 1,600,000 £ 1,311,853 10 £ 2,500,000 £ 2,033,555
£ 1,600,000 £ 1,301,475 10 £ 2,500,000 £ 2,017,467
£ 1,600,000 £ 1,291,179 10 £ 2,500,000 £ 2,001,507
£ 1,600,000 £ 1,280,964 10 £ 2,500,000 £ 1,985,673
£ 1,600,000 £ 1,270,831 10 £ 2,500,000 £ 1,969,964
£ 1,600,000 £ 1,260,777 10 £ 2,500,000 £ 1,954,380
£ 1,600,000 £ 1,250,803 10 £ 2,500,000 £ 1,938,918
£ 1,600,000 £ 1,240,908 10 £ 2,500,000 £ 1,923,579
£ 1,600,000 £ 1,231,091 10 £ 2,500,000 £ 1,908,362
£ 1,600,000 £ 1,221,352 10 £ 2,500,000 £ 1,893,265
£ 1,600,000 £ 1,211,689 10 £ 2,500,000 £ 1,878,287
£ 1,600,000 £ 1,202,104 10 £ 2,500,000 £ 1,863,428
£ 1,600,000 £ 1,192,594 10 £ 2,500,000 £ 1,848,686
£ 1,600,000 £ 1,183,159 10 £ 2,500,000 £ 1,834,061
£ 1,600,000 £ 1,173,799 10 £ 2,500,000 £ 1,819,552
£ 1,600,000 £ 1,164,513 10 £ 2,500,000 £ 1,805,157
£ 1,600,000 £ 1,155,301 10 £ 2,500,000 £ 1,790,876
£ 1,600,000 £ 1,146,161 10 £ 2,500,000 £ 1,776,709
£ 1,600,000 £ 1,137,094 10 £ 2,500,000 £ 1,762,653
£ 1,600,000 £ 1,128,098 10 £ 2,500,000 £ 1,748,709
£ 1,600,000 £ 1,119,173 10 £ 2,500,000 £ 1,734,874
£ 1,600,000 £ 1,110,320 10 £ 2,500,000 £ 1,721,150
£ 1,600,000 £ 1,101,536 10 £ 2,500,000 £ 1,707,534
£ 1,600,000 £ 1,092,822 10 £ 2,500,000 £ 1,694,025
£ 1,600,000 £ 1,084,176 10 £ 2,500,000 £ 1,680,624
£ 1,600,000 £ 1,075,599 10 £ 2,500,000 £ 1,667,328
£ 1,600,000 £ 1,067,090 10 £ 2,500,000 £ 1,654,138
£ 1,600,000 £ 1,058,648 10 £ 2,500,000 £ 1,641,052
£ 1,600,000 £ 1,050,273 10 £ 2,500,000 £ 1,628,069
£ 1,600,000 £ 1,041,964 10 £ 2,500,000 £ 1,615,190
£ 1,600,000 £ 1,033,721 10 £ 2,500,000 £ 1,602,412
£ 1,600,000 £ 1,025,544 10 £ 2,500,000 £ 1,589,735
£ 1,600,000 £ 1,017,430 10 £ 2,500,000 £ 1,577,159
£ 1,600,000 £ 1,009,381 10 £ 2,500,000 £ 1,564,682
£ 1,600,000 £ 1,001,396 10 £ 2,500,000 £ 1,552,303
£ - £ - 10 £ 2,500,000 £ 1,540,023
£ - £ - 10 £ 2,500,000 £ 1,527,840
£ - £ - 10 £ 2,500,000 £ 1,515,753
£ - £ - 0 £ - £ -
£ - £ - 0 £ - £ -
£ - £ - 0 £ - £ -
£ - £ - 0 £ - £ -
£ - £ - 0 £ - £ -
£ - £ - 0 £ - £ -
£ 101,668,126 £ 116,047,908
[6] [4]
NPV £ 14,379,781
 Flats built
at start of
Land costs £ 25,000,000 Month PV Factor quarter
Cost of each apartment £ 160,000 0 1
Sale price of each apartment £ 250,000 1 0.992089 10
Proportion of apartments sold 100% 2 0.98424 10
Risk discount rate 10.00% 3 0.976454 10
4 0.968729 10
5 0.961066 10
6 0.953463 10
7 0.94592 10
8 0.938436 10
9 0.931012 10
10 0.923647 10
11 0.91634 10
12 0.909091 10
13 0.901899 10
14 0.894764 10
15 0.887686 10
16 0.880663 10
17 0.873696 10
18 0.866784 10
19 0.859927 10
20 0.853124 10
21 0.846375 10
22 0.839679 10
23 0.833036 10
24 0.826446 10
25 0.819908 10
26 0.813422 10
27 0.806987 10
28 0.800603 10
29 0.794269 10
30 0.787986 10
31 0.781752 10
32 0.775567 10
33 0.769432 10
34 0.763345 10
35 0.757306 10
36 0.751315 10
37 0.745371 10
38 0.739474 10
39 0.733624 10
40 0.727821 10
 41 0.722063 10
42 0.716351 10
43 0.710683 10
44 0.705061 10
45 0.699483 10
46 0.69395 10
47 0.68846 10
48 0.683013 10
49 0.67761 10
50 0.672249 10
51 0.666931 10
52 0.661655 10
53 0.656421 10
54 0.651228 10
55 0.646076 10
56 0.640965 10
57 0.635894 10
58 0.630863 10
59 0.625873 10
60 0.620921 10
61 0.616009 0
62 0.611136 0
63 0.606301 0
64 0.601505 0
65 0.596746 0
66 0.592025 0
67 0.587342 0
68 0.582695 0
69 0.578085 0
Total
 Flats sold Accumulated
at end of profit at start of Accumulated profit
Land costs Building costs month Sales income month at end of month
£ 25,000,000 -£ 25,000,000
£ 1,600,000 -£ 26,600,000 -£ 26,812,112
£ 1,600,000 -£ 28,412,112 -£ 28,638,674
£ 1,600,000 0 £ - -£ 30,238,674 -£ 30,479,802
£ 1,600,000 10 £ 2,500,000 -£ 32,079,802 -£ 29,835,611
£ 1,600,000 10 £ 2,500,000 -£ 31,435,611 -£ 29,186,283
£ 1,600,000 10 £ 2,500,000 -£ 30,786,283 -£ 28,531,777
£ 1,600,000 10 £ 2,500,000 -£ 30,131,777 -£ 27,872,052
£ 1,600,000 10 £ 2,500,000 -£ 29,472,052 -£ 27,207,066
£ 1,600,000 10 £ 2,500,000 -£ 28,807,066 -£ 26,536,778
£ 1,600,000 10 £ 2,500,000 -£ 28,136,778 -£ 25,861,144
£ 1,600,000 10 £ 2,500,000 -£ 27,461,144 -£ 25,180,123
£ 1,600,000 10 £ 2,500,000 -£ 26,780,123 -£ 24,493,672
£ 1,600,000 10 £ 2,500,000 -£ 26,093,672 -£ 23,801,746
£ 1,600,000 10 £ 2,500,000 -£ 25,401,746 -£ 23,104,303
£ 1,600,000 10 £ 2,500,000 -£ 24,704,303 -£ 22,401,299
£ 1,600,000 10 £ 2,500,000 -£ 24,001,299 -£ 21,692,689
£ 1,600,000 10 £ 2,500,000 -£ 23,292,689 -£ 20,978,428
£ 1,600,000 10 £ 2,500,000 -£ 22,578,428 -£ 20,258,471
£ 1,600,000 10 £ 2,500,000 -£ 21,858,471 -£ 19,532,774
£ 1,600,000 10 £ 2,500,000 -£ 21,132,774 -£ 18,801,290
£ 1,600,000 10 £ 2,500,000 -£ 20,401,290 -£ 18,063,972
£ 1,600,000 10 £ 2,500,000 -£ 19,663,972 -£ 17,320,776
£ 1,600,000 10 £ 2,500,000 -£ 18,920,776 -£ 16,571,653
£ 1,600,000 10 £ 2,500,000 -£ 18,171,653 -£ 15,816,556
£ 1,600,000 10 £ 2,500,000 -£ 17,416,556 -£ 15,055,438
£ 1,600,000 10 £ 2,500,000 -£ 16,655,438 -£ 14,288,251
£ 1,600,000 10 £ 2,500,000 -£ 15,888,251 -£ 13,514,946
£ 1,600,000 10 £ 2,500,000 -£ 15,114,946 -£ 12,735,475
£ 1,600,000 10 £ 2,500,000 -£ 14,335,475 -£ 11,949,788
£ 1,600,000 10 £ 2,500,000 -£ 13,549,788 -£ 11,157,836
£ 1,600,000 10 £ 2,500,000 -£ 12,757,836 -£ 10,359,568
£ 1,600,000 10 £ 2,500,000 -£ 11,959,568 -£ 9,554,936
£ 1,600,000 10 £ 2,500,000 -£ 11,154,936 -£ 8,743,887
£ 1,600,000 10 £ 2,500,000 -£ 10,343,887 -£ 7,926,370
£ 1,600,000 10 £ 2,500,000 -£ 9,526,370 -£ 7,102,335
£ 1,600,000 10 £ 2,500,000 -£ 8,702,335 -£ 6,271,729
£ 1,600,000 10 £ 2,500,000 -£ 7,871,729 -£ 5,434,499
£ 1,600,000 10 £ 2,500,000 -£ 7,034,499 -£ 4,590,593
£ 1,600,000 10 £ 2,500,000 -£ 6,190,593 -£ 3,739,958
£ 1,600,000 10 £ 2,500,000 -£ 5,339,958 -£ 2,882,539
£ 1,600,000 10 £ 2,500,000 -£ 4,482,539 -£ 2,018,284
£ 1,600,000 10 £ 2,500,000 -£ 3,618,284 -£ 1,147,136
£ 1,600,000 10 £ 2,500,000 -£ 2,747,136 -£ 269,042
£ 1,600,000 10 £ 2,500,000 -£ 1,869,042 £ 616,054 [4]
£ 1,600,000 10 £ 2,500,000 -£ 983,946 £ 1,508,208
£ 1,600,000 10 £ 2,500,000 -£ 91,792 £ 2,407,476
£ 1,600,000 10 £ 2,500,000 £ 807,476 £ 3,313,915
£ 1,600,000 10 £ 2,500,000 £ 1,713,915 £ 4,227,582
£ 1,600,000 10 £ 2,500,000 £ 2,627,582 £ 5,148,534
£ 1,600,000 10 £ 2,500,000 £ 3,548,534 £ 6,076,831
£ 1,600,000 10 £ 2,500,000 £ 4,476,831 £ 7,012,530
£ 1,600,000 10 £ 2,500,000 £ 5,412,530 £ 7,955,690
£ 1,600,000 10 £ 2,500,000 £ 6,355,690 £ 8,906,371
£ 1,600,000 10 £ 2,500,000 £ 7,306,371 £ 9,864,633
£ 1,600,000 10 £ 2,500,000 £ 8,264,633 £ 10,830,536
£ 1,600,000 10 £ 2,500,000 £ 9,230,536 £ 11,804,142
£ 1,600,000 10 £ 2,500,000 £ 10,204,142 £ 12,785,511
£ 1,600,000 10 £ 2,500,000 £ 11,185,511 £ 13,774,706
£ 1,600,000 10 £ 2,500,000 £ 12,174,706 £ 14,771,789
£ 1,600,000 10 £ 2,500,000 £ 13,171,789 £ 15,776,823
£ - 10 £ 2,500,000 £ 15,776,823 £ 18,402,629
£ - 10 £ 2,500,000 £ 18,402,629 £ 21,049,374
£ - 10 £ 2,500,000 £ 21,049,374 £ 23,717,225 [4]
£ - 0 £ - £ 23,906,350
£ - 0 £ - £ 24,096,982
£ - 0 £ - £ 24,289,135
£ - 0 £ - £ 24,482,820
£ - 0 £ - £ 24,678,049
£ - 0 £ - £ 24,874,836

NPV £ 14,379,781 [4]

(b) DPP is 44 months

(NB this assumes that end of month income is

received just before the next month's costs are
incurred. If end of month income and the
following month's costs are assumed to be
received/incurred at the same time, then the DPP
would be at the bginning of the 47th months i.e.
after 46 months)

(a) accumulated profit after 63 months

( c ) Accumulated profit is 0 if RDR = 27.09% via solver

 Flats
built at
start of
Land costs £ 25,000,000 Month PV Factor quarter
Cost of each apartment £ 160,000 0 1
Sale price of each apartment £ 250,000 1 0.9906 10
Proportion of apartments sold 100% 2 0.981289 10
Borrowing rate 12.00% 3 0.972065 10
Lending rate 6.00% 4 0.962928 10
5 0.953877 10
6 0.944911 10
7 0.936029 10
8 0.927231 10
9 0.918515 10
10 0.909882 10
11 0.901329 10
12 0.892857 10
13 0.884465 10
14 0.876151 10
15 0.867916 10
16 0.859757 10
17 0.851676 10
18 0.843671 10
19 0.835741 10
20 0.827885 10
21 0.820103 10
22 0.812394 10
23 0.804758 10
24 0.797194 10
25 0.789701 10
26 0.782278 10
27 0.774925 10
28 0.767641 10
29 0.760425 10
30 0.753277 10
31 0.746197 10
32 0.739183 10
33 0.732235 10
34 0.725352 10
35 0.718534 10
36 0.71178 10
37 0.70509 10
38 0.698462 10
39 0.691897 10
40 0.685393 10
 41 0.678951 10
42 0.672569 10
43 0.666247 10
44 0.659985 10
45 0.653781 10
46 0.647636 10
47 0.641548 10
48 0.635518 10
49 0.629544 10
50 0.623627 10
51 0.617765 10
52 0.611958 10
53 0.606206 10
54 0.600508 10
55 0.594864 10
56 0.589272 10
57 0.583733 10
58 0.578246 10
59 0.572811 10
60 0.567427 10
61 0.562093 0
62 0.55681 0
63 0.551576 0
64 0.546391 0
65 0.541256 0
66 0.536168 0
67 0.531128 0
68 0.526136 0
69 0.52119 0
Total
 Flats
sold at
end of Accumulation Accumulated profit
Land costs Building costs month Sales income rate at end of month
£ 25,000,000 -£ 25,000,000
£ 1,600,000 12% -£ 26,852,402
£ 1,600,000 12% -£ 28,722,381
£ 1,600,000 0 £ - 12% -£ 30,610,104
£ 1,600,000 10 £ 2,500,000 12% -£ 30,015,739
£ 1,600,000 10 £ 2,500,000 12% -£ 29,415,734
£ 1,600,000 10 £ 2,500,000 12% -£ 28,810,036
£ 1,600,000 10 £ 2,500,000 12% -£ 28,198,590
£ 1,600,000 10 £ 2,500,000 12% -£ 27,581,343
£ 1,600,000 10 £ 2,500,000 12% -£ 26,958,239
£ 1,600,000 10 £ 2,500,000 12% -£ 26,329,222
£ 1,600,000 10 £ 2,500,000 12% -£ 25,694,236
£ 1,600,000 10 £ 2,500,000 12% -£ 25,053,226
£ 1,600,000 10 £ 2,500,000 12% -£ 24,406,133
£ 1,600,000 10 £ 2,500,000 12% -£ 23,752,900
£ 1,600,000 10 £ 2,500,000 12% -£ 23,093,468
£ 1,600,000 10 £ 2,500,000 12% -£ 22,427,779
£ 1,600,000 10 £ 2,500,000 12% -£ 21,755,774
£ 1,600,000 10 £ 2,500,000 12% -£ 21,077,392
£ 1,600,000 10 £ 2,500,000 12% -£ 20,392,573
£ 1,600,000 10 £ 2,500,000 12% -£ 19,701,256
£ 1,600,000 10 £ 2,500,000 12% -£ 19,003,379
£ 1,600,000 10 £ 2,500,000 12% -£ 18,298,880
£ 1,600,000 10 £ 2,500,000 12% -£ 17,587,697
£ 1,600,000 10 £ 2,500,000 12% -£ 16,869,765
£ 1,600,000 10 £ 2,500,000 12% -£ 16,145,021
£ 1,600,000 10 £ 2,500,000 12% -£ 15,413,399
£ 1,600,000 10 £ 2,500,000 12% -£ 14,674,836
£ 1,600,000 10 £ 2,500,000 12% -£ 13,929,265
£ 1,600,000 10 £ 2,500,000 12% -£ 13,176,619
£ 1,600,000 10 £ 2,500,000 12% -£ 12,416,831
£ 1,600,000 10 £ 2,500,000 12% -£ 11,649,834
£ 1,600,000 10 £ 2,500,000 12% -£ 10,875,559
£ 1,600,000 10 £ 2,500,000 12% -£ 10,093,937
£ 1,600,000 10 £ 2,500,000 12% -£ 9,304,898
£ 1,600,000 10 £ 2,500,000 12% -£ 8,508,372
£ 1,600,000 10 £ 2,500,000 12% -£ 7,704,288
£ 1,600,000 10 £ 2,500,000 12% -£ 6,892,575
£ 1,600,000 10 £ 2,500,000 12% -£ 6,073,159
£ 1,600,000 10 £ 2,500,000 12% -£ 5,245,968
£ 1,600,000 10 £ 2,500,000 12% -£ 4,410,928
£ 1,600,000 10 £ 2,500,000 12% -£ 3,567,965
£ 1,600,000 10 £ 2,500,000 12% -£ 2,717,002
£ 1,600,000 10 £ 2,500,000 12% -£ 1,857,966
£ 1,600,000 10 £ 2,500,000 12% -£ 990,777
£ 1,600,000 10 £ 2,500,000 12% -£ 115,361
£ 1,600,000 10 £ 2,500,000 12% £ 768,363
£ 1,600,000 10 £ 2,500,000 6% £ 1,664,314
£ 1,600,000 10 £ 2,500,000 6% £ 2,564,628
£ 1,600,000 10 £ 2,500,000 6% £ 3,469,323
£ 1,600,000 10 £ 2,500,000 6% £ 4,378,422
£ 1,600,000 10 £ 2,500,000 6% £ 5,291,946
£ 1,600,000 10 £ 2,500,000 6% £ 6,209,917
£ 1,600,000 10 £ 2,500,000 6% £ 7,132,356
£ 1,600,000 10 £ 2,500,000 6% £ 8,059,285
£ 1,600,000 10 £ 2,500,000 6% £ 8,990,726
£ 1,600,000 10 £ 2,500,000 6% £ 9,926,700
£ 1,600,000 10 £ 2,500,000 6% £ 10,867,231
£ 1,600,000 10 £ 2,500,000 6% £ 11,812,340
£ 1,600,000 10 £ 2,500,000 6% £ 12,762,049
£ 1,600,000 10 £ 2,500,000 6% £ 13,716,381
£ - 10 £ 2,500,000 6% £ 16,283,146
£ - 10 £ 2,500,000 6% £ 18,862,405
£ - 10 £ 2,500,000 6% £ 21,454,219 [4]
£ - 0 £ - 6% £ 21,558,648 c
£ - 0 £ - 6% £ 21,663,586
£ - 0 £ - 6% £ 21,769,035
£ - 0 £ - 6% £ 21,874,996
£ - 0 £ - 6% £ 21,981,474
£ - 0 £ - 6% £ 22,088,470
[2]
(a) accumulated profit after 63 months
Land costs £ 25,000,000 Month PV Factor
Cost of each apartment £ 160,000 0 1
Sale price of each apartment £ 250,000 1 0.992089
Proportion of apartments sold 60% after 3 months 2 0.98424
40% after 9 months 3 0.976454
Risk discount rate 10.00% 4 0.968729
Inflation rate 3.00% 5 0.961066
6 0.953463
7 0.94592
8 0.938436
9 0.931012
10 0.923647
11 0.91634
12 0.909091
13 0.901899
14 0.894764
15 0.887686
16 0.880663
17 0.873696
18 0.866784
19 0.859927
20 0.853124
21 0.846375
22 0.839679
23 0.833036
24 0.826446
25 0.819908
26 0.813422
27 0.806987
28 0.800603
29 0.794269
30 0.787986
31 0.781752
32 0.775567
33 0.769432
34 0.763345
35 0.757306
36 0.751315
37 0.745371
38 0.739474
39 0.733624
40 0.727821
 41 0.722063
42 0.716351
43 0.710683
44 0.705061
45 0.699483
46 0.69395
47 0.68846
48 0.683013
49 0.67761
50 0.672249
51 0.666931
52 0.661655
53 0.656421
54 0.651228
55 0.646076
56 0.640965
57 0.635894
58 0.630863
59 0.625873
60 0.620921
61 0.616009
62 0.611136
63 0.606301
64 0.601505
65 0.596746
66 0.592025
67 0.587342
68 0.582695
69 0.578085
Total
Flats built Flats sold Accumulated
at start of at end of profit at start of Accumulated profit
quarter Land costs Building costs month Sales income month at end of month
£ 25,000,000 -£ 25,000,000
10 £ 1,600,000 -£ 26,600,000 -£ 26,812,112
10 £ 1,603,946 -£ 28,416,058 -£ 28,642,652
10 £ 1,607,902 0 £ - -£ 30,250,554 -£ 30,491,776
10 £ 1,611,867 6 £ 1,500,000 -£ 32,103,643 -£ 30,859,642
10 £ 1,615,843 6 £ 1,500,000 -£ 32,475,485 -£ 31,234,449
10 £ 1,619,828 6 £ 1,500,000 -£ 32,854,276 -£ 31,616,261
10 £ 1,623,823 6 £ 1,500,000 -£ 33,240,084 -£ 32,005,145
10 £ 1,627,827 6 £ 1,500,000 -£ 33,632,972 -£ 32,401,166
10 £ 1,631,842 6 £ 1,500,000 -£ 34,033,008 -£ 32,804,392
10 £ 1,635,867 10 £ 2,500,000 -£ 34,440,259 -£ 32,214,890
10 £ 1,639,901 10 £ 2,500,000 -£ 33,854,792 -£ 31,624,754
10 £ 1,643,946 10 £ 2,500,000 -£ 33,268,700 -£ 31,033,989
10 £ 1,648,000 10 £ 2,500,000 -£ 32,681,989 -£ 30,442,600
10 £ 1,652,064 10 £ 2,500,000 -£ 32,094,665 -£ 29,850,592
10 £ 1,656,139 10 £ 2,500,000 -£ 31,506,731 -£ 29,257,970
10 £ 1,660,223 10 £ 2,500,000 -£ 30,918,193 -£ 28,664,739
10 £ 1,664,318 10 £ 2,500,000 -£ 30,329,057 -£ 28,070,905
10 £ 1,668,423 10 £ 2,500,000 -£ 29,739,328 -£ 27,476,473
10 £ 1,672,537 10 £ 2,500,000 -£ 29,149,011 -£ 26,881,449
10 £ 1,676,662 10 £ 2,500,000 -£ 28,558,111 -£ 26,285,838
10 £ 1,680,797 10 £ 2,500,000 -£ 27,966,635 -£ 25,689,645
10 £ 1,684,943 10 £ 2,500,000 -£ 27,374,588 -£ 25,092,876
10 £ 1,689,098 10 £ 2,500,000 -£ 26,781,975 -£ 24,495,538
10 £ 1,693,264 10 £ 2,500,000 -£ 26,188,802 -£ 23,897,635
10 £ 1,697,440 10 £ 2,500,000 -£ 25,595,075 -£ 23,299,174
10 £ 1,701,626 10 £ 2,500,000 -£ 25,000,800 -£ 22,700,160
10 £ 1,705,823 10 £ 2,500,000 -£ 24,405,983 -£ 22,100,600
10 £ 1,710,030 10 £ 2,500,000 -£ 23,810,630 -£ 21,500,499
10 £ 1,714,247 10 £ 2,500,000 -£ 23,214,746 -£ 20,899,864
10 £ 1,718,475 10 £ 2,500,000 -£ 22,618,339 -£ 20,298,701
10 £ 1,722,713 10 £ 2,500,000 -£ 22,021,415 -£ 19,697,016
10 £ 1,726,962 10 £ 2,500,000 -£ 21,423,979 -£ 19,094,816
10 £ 1,731,221 10 £ 2,500,000 -£ 20,826,038 -£ 18,492,107
10 £ 1,735,491 10 £ 2,500,000 -£ 20,227,598 -£ 17,888,896
10 £ 1,739,771 10 £ 2,500,000 -£ 19,628,667 -£ 17,285,189
10 £ 1,744,062 10 £ 2,500,000 -£ 19,029,251 -£ 16,680,993
10 £ 1,748,363 10 £ 2,500,000 -£ 18,429,356 -£ 16,076,314
10 £ 1,752,675 10 £ 2,500,000 -£ 17,828,989 -£ 15,471,160
10 £ 1,756,998 10 £ 2,500,000 -£ 17,228,158 -£ 14,865,538
10 £ 1,761,331 10 £ 2,500,000 -£ 16,626,869 -£ 14,259,454
10 £ 1,765,675 10 £ 2,500,000 -£ 16,025,128 -£ 13,652,915
10 £ 1,770,029 10 £ 2,500,000 -£ 15,422,944 -£ 13,045,929
10 £ 1,774,395 10 £ 2,500,000 -£ 14,820,324 -£ 12,438,503
10 £ 1,778,771 10 £ 2,500,000 -£ 14,217,274 -£ 11,830,645
10 £ 1,783,158 10 £ 2,500,000 -£ 13,613,803 -£ 11,222,361
10 £ 1,787,556 10 £ 2,500,000 -£ 13,009,917 -£ 10,613,660
10 £ 1,791,964 10 £ 2,500,000 -£ 12,405,624 -£ 10,004,548
10 £ 1,796,384 10 £ 2,500,000 -£ 11,800,932 -£ 9,395,034
10 £ 1,800,814 10 £ 2,500,000 -£ 11,195,848 -£ 8,785,126
10 £ 1,805,255 10 £ 2,500,000 -£ 10,590,381 -£ 8,174,830
10 £ 1,809,708 10 £ 2,500,000 -£ 9,984,538 -£ 7,564,156
10 £ 1,814,171 10 £ 2,500,000 -£ 9,378,327 -£ 6,953,111
10 £ 1,818,645 10 £ 2,500,000 -£ 8,771,756 -£ 6,341,703
10 £ 1,823,130 10 £ 2,500,000 -£ 8,164,834 -£ 5,729,941
10 £ 1,827,627 10 £ 2,500,000 -£ 7,557,568 -£ 5,117,833
10 £ 1,832,134 10 £ 2,500,000 -£ 6,949,967 -£ 4,505,387
10 £ 1,836,653 10 £ 2,500,000 -£ 6,342,040 -£ 3,892,612
10 £ 1,841,182 10 £ 2,500,000 -£ 5,733,794 -£ 3,279,516
10 £ 1,845,723 10 £ 2,500,000 -£ 5,125,240 -£ 2,666,109
10 £ 1,850,275 10 £ 2,500,000 -£ 4,516,384 -£ 2,052,399
0 £ - 10 £ 2,500,000 -£ 2,052,399 £ 431,235
0 £ - 10 £ 2,500,000 £ 431,235 £ 2,934,674
0 £ - 10 £ 2,500,000 £ 2,934,674 £ 5,458,076
0 £ - 4 £ 1,000,000 £ 5,458,076 £ 6,501,599
0 £ - 4 £ 1,000,000 £ 6,501,599 £ 7,553,444
0 £ - 4 £ 1,000,000 £ 7,553,444 £ 8,613,676
0 £ - 4 £ 1,000,000 £ 8,613,676 £ 9,682,363
0 £ - 4 £ 1,000,000 £ 9,682,363 £ 10,759,571
0 £ - 4 £ 1,000,000 £ 10,759,571 £ 11,845,369
[4] [4]
NPV £ 6,847,636
[2] (b) DPP is 61 months

(NB same answer if end of month income

and the following month's costs are
assumed to be received/incurred at the
same time)

[2] (a) accumulated profit after 69 months

[2] ( c ) Accumulated profit is 0 if RDR = 16.89% via solver

(i) (a) £ 101,668,126
(b) £ 116,047,908
(ii) (a) £ 23,717,225
(b) 44 months
(c) 27.09%
(iii) £ 21,454,219
(iv) (a) £ 11,845,369
(b) 61 months
(c) 16.89%