A developer is planning to develop a 13-floor commercial building. All the floors have the same net lettable area and will be sold for $1,800,000 each. The total construction cost of the project is $16,000,000. Other costs to be incurred is $2,750,000.

Estimate the predicted profit from the development (base case).

Apart from the estimated base case, assume all the variables remained unchanged, estimate the impact (percentage difference) the following changes will have on the predicted profit of the base case:

i.         10% increase in the sale price

ii.         10% reduction in construction costs

Please show your workings to get the full mark.