An income-generating property is bought for $7,500,000 today. Net operating cash flows from the rent roll are $1,000,000 for the first year, increasing by $200,000 per year for the next four years (end of year), at which time the building is expected to be sold for $5,000,000 (less a 5% real estate commission). At a discount rate of 8%, determine the NPV for this potential investment in commercial real estate.

Seleccione una:

a. -$295,361

b. $1,999,965

c. $2,056,112

d. $980,264

e. Cannot be determined with the information provided.