15. [**] You are considering the purchase of an apartment complex. The following assumptions are made: The purchase price is $1,000,000. Potential gross income (PGI) for the first year of operations is projected to be $171,000. PGI is expected to increase by 4 percent per year. No vacancies are expected. Operating expenses are estimated at 35 percent of effective gross income. Ignore capital expenditures. The apartment complex will be sold for $1,169,859 at the end of the 4 th year. Selling expenses will be 4 percent. The apprppriate unlevered rate of return to discount projected NOIs and the projected NSP is 12 percent. hine holding period is 4 years. The required levered rate of return is 14 percent. 70 percent of the acquisition price can be borrowed with a 30 -year, monthly payment mortgage. The annual interest rate on the mortgage will be 8.0 percent. Financing costs will equal 2 percent of the loan amount. There are no prepayment penalties. Determine the levered net present value of this investment: A. $81,503 B. $512,975 C. $114,188 D. $173,025