A property was purchased 5 years ago for $1mil and provided NOI of $70,000 in Year 1, increasing at 5% per annum. What price would a potential buyer have to pay today; if income yields for the property have fallen by 1%?

Select one:

a.

$1,122,341

b.

$945,202

c.

$1,488,995.17

d.

$985,333

e.

$1,215,506