Areal estate developer is evaluating a 40-unit apartment development. the expected average occupancy is 90%. cost of land: $1,200,000 construction: $$4,800,000 project life: 25 years maintenance: $100 per unit per year (regardless of weather a unit is occupied). annual insurance and property taxes: $400,000 required return: 12% per year (0.9489% per month) assume that the building will have no salvage value at the end of 25 years, but the land will appreciate at a rate of 5% per year. determine the total minimum monthly rent (all units combined) that should be charged, given the required return.

Cadbury has a chocolate factory in dunedin, new zealand. for easter, it makes two kinds of “easter eggs”: milk chocolate and dark chocolate. it cycles between producing milk and dark chocolate eggs. the table below provides data on these two products. demand (lbs per hour) milk: 500 dark: 200 switchover time (minutes) milk: 60 dark: 30 production rate per hour milk: 800 dark: 800 for example, it takes 30 minutes to switch production from milk to dark chocolate. demand for milk chocolate is higher (500lbs per hour versus 200 lbs per hour), but the line produces them at the same rate (when operating): 800 lbs per hour. a : suppose cadbury produces 2,334lbs milk chocolate and 1,652 lbs of dark chocolate in each cycle. what would be the maximum inventory (lbs) of milk chocolate? b : how many lbs of milk and dark chocolate should be produced with each cycle so as to satisfy demand while minimizing inventory?