An investment company is considering the purchase of an office property. After a careful review of the market and the leases that are in place, the company believes that next year's cash flow will be $100,000. It also believes that the cash flow will rise in the amount of $5,000 each year for 10 years and then grow at 2% per year indefinitely. The investment company believes that it should earn an IRR (required rate of return) of 12%.

Assume that the investment company expects to own the property for 10 years andthen sellit, what would be the value for this property today? (Choose thenearestvalue)

Group of answer choices

$1,224,809.57

$1,366,584.78

$1,142,491.42

$1,092,465.22