An investor is considering the purchase of a property for $1 million. Based on the $1 million price, the property has a cap rate of 10%. The investor can obtain an interest-only mortgage loan at 8.0%. Suppose the investor borrows 75% of the price to acquire the property. What is the maximum price the investor could pay for the property before debt financing has a negative effect on the equity cash yield?

Group of answer choices

$1,250,000

$1,300,500

$1,300,800

$1,400,400