Going In Cap Rates and Yield On Cost - Dev Project Question

Hey guys, was looking over a textbook and wanted to clarify this, example below is for a value add project not ground up.

So Yield on Cost would be Year 1 NOI/Costs (Land, Hard, Soft Costs). So if NOI is $10 and Costs are $100 YoC is 10%. From my understanding if the expected exit cap rate is 100 to 200 basis points lower (sell for at least an 8 cap) depending on overall risk developers are generally comfortable with this to move forward with a project.

That seems to be different than a going in cap rate which will only apply to the land (and building on it). So say out of the $100 in total cost 60% of that is land/building. So the NOI of $10 the first year divided by the $60 for land is a 16.6 cap (seems unrealistic but these are made up numbers).

Would this be an example of build to a 16.6 cap and sell for an 8 cap? I am confused because to me this could be seen as build to a 10 (YoC), sell for an 8.

I feel like I am over complicating it and mixing up concepts that are separate.