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A new 10,000-square-foot building has just been constructed at a location where no recent vacant land sales have occurred, and competitive investments earn 10% interest.

A new 10,000-square-foot building has just been constructed at a location where no recent vacant land sales have occurred, and competitive investments earn 10% interest. The replacement cost is $400,000. Assuming a useful life expectancy of 25 years, an economic rent of $1 per square foot per month, and annual expenses of $30,000 including vacancy allowance, what total property value is indicated?

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