2. A building contains 10 units that could rent for $550 per month. Use the owner's income statement below for this question: Rental Income (last year) $60,000 Operating & Capital Expenses Power 2,200 Heat 1,700 Janitor 4,600 Water 3,700 Maintenance 4,800 Capital Expenditures 2,800 Management 3,000 Depreciation (tax) 5,000 Mortgage Payments 6,300 a. Using a vacancy and collection loss of 5% of gross income, reconstruct the operating statement to obtain NOI. Assume an above-line treatment of CAPX. Note that we may not include every item from the owner's statement in the operating statement. b. Using the above NOI and an R. of 11.0%, calculate the property's indicated market value. C. Suppose that the vacancy and collection loss increases to 10% and the R. drops to 8%. What is the new market value of this property? 2. A building contains 10 units that could rent for $550 per month. Use the owner's income statement below for this question: Rental Income (last year) $60,000 Operating & Capital Expenses Power 2,200 Heat 1,700 Janitor 4,600 Water 3,700 Maintenance 4,800 Capital Expenditures 2,800 Management 3,000 Depreciation (tax) 5,000 Mortgage Payments 6,300 a. Using a vacancy and collection loss of 5% of gross income, reconstruct the operating statement to obtain NOI. Assume an above-line treatment of CAPX. Note that we may not include every item from the owner's statement in the operating statement. b. Using the above NOI and an R. of 11.0%, calculate the property's indicated market value. C. Suppose that the vacancy and collection loss increases to 10% and the R. drops to 8%. What is the new market value of this property