Ace Investment Company is considering the purchase of the Apartment Arms project. Next years NOI and cash flow is expected to be $2,000,000, and based on Aces economic forecast, market supply and demand and vacancy levels appear to be in balance. As a result, NOI should increase at 2 percent each year for the foreseeable future. Ace believes that it should earn at least a 10 percent return on its investment.

Assuming the above facts, what would the estimated value for the property be now?

A. 25,000,000

B. 2,000,000

C. 20,000,000

D. 16,000,000

E. 16,666,667