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Ali is considering buying a commercial building in Chicago. He has learned the following facts from his real estate broker: Market Cap Rate 8.00% Rental

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Ali is considering buying a commercial building in Chicago. He has learned the following facts from his real estate broker: Market Cap Rate 8.00% Rental Income $2,500,000 Operating Expenses $900,000 Existing Annual Mortgage Payment $975,000($225,000 is principal and $750,000 is interest) Current rate for a 15 year mortgage 5% Based on the facts above, what is the Market Price for this building? O A. $31,250 O B. $20,000,000 O C. Cannot determine with the facts that are given O D. $7,812,500

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