9) The NOI for your income property is expected to be $900 000 for the first year. Debt financing will be based on a 1.2 DCR applied to the first year NOI, will have a 4.5 percent interest rate, and will be amortized over 30 years with monthly payments. This is a CPM (FPM), constant or fixed payment mortgage. The NOI will increase 2.5 percent per year after the first year. You expect to hold the property for five years. The resale price is estimated by applying a 4 percent terminal capitalization rate to the sixth-year NOI. You require a 12 percent rate of return on equity (equity yield rate) for your property. What is the present value of the equity interest in the property? Note! If you choose MCQ alternative E, then you need to write the correct present value to get 1 point.

A) 10 964 278

B) 7 783 371

C) Minus 560 059

D) 11 152 667

E) None of the above (A, B, C, D) is close to be correct. Instead it should be:______________________