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.

Feedback systems do not always involve negative feedback. economic inflation, which is evidenced by continually rising prices, is a positive feedback system. a positive feedback control system, as shown on the right, adds the feedback signal to the input signal, and the resulting signal is used as the input to the process. a simple model of the price-wage inflationary spiral is shown on the right. add additional feedback loops, such as legislative control or control of the tax rate, to stabilize the system. it is assumed that an increase in workers’ salaries, after some time delay, results an increase in prices. under what conditions could prices be stabilized by falsifying or delaying the availability of cost-ofliving data? how would a national wage and price economic guideline program affect the feedback system?