A real estate agent is evaluating an apartment building using the income approach. She has gathered the following information for an apartment valuation.

Gross annual rental income	Sh. 670,000
Operating expenses (% of rental income)	5.5%
Depreciation	Sh. 12,000
Insurance and property taxes	Sh. 30,000
Income taxes	Sh. 28,000
Maintenance	Sh. 45,000
Interest on financing	Sh. 27,000
Utilities	Sh. 32,000
Cap rate	10%
Growth rate	3%

Required

Calculate the value of the apartment. (5 marks)