An investor plans to purchase a 24,000 square foot retail building. The market rent on the building is $17 per square foot per year. Rents are expected to increase by 3.25% per year. The market vacancy rate is expected to be 6% and expenses 35% of EGI. Both the vacancy rate and the operating expense ratio are expected to remain constant during the investment period of 3 years. What is the current value of the property using the direct capitalization approach, assuming the overall capitalization rate, R0, is 7.50%. A. $5,113,600 B. $3,323,840 C. $3,543,400 D. $1,789,760