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A commercial property has an annual rent of $ 1 7 0 , 0 0 0 . The vacancy loss rate is 9 % and

A commercial property has an annual rent of $170,000. The vacancy loss rate is 9% and annual operating expenses are 45% of gross income. The investor expects to sell this property in two years with an estimated net proceeds from sales of $500,000. The two-year Treasury note has a rate of 3%, the liquidity premium is 2% and the required risk premium is 4%. What is the net operating income (NOI) for year one? (Show your answer to the nearest dollar with no $ or comma. For example, $45,089.87 is shown as 45090.)

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