An investor plans to purchase a small retail shopping center. The current potential gross income is $$120,000.$ Rental income is expected to increase by $3\mathrm{.}5\%$ per year over an expected $3-$year holding period. The vacancy rate is expected to be $7\%.$ Operating expenses are $40\%$ of effective gross income $($EGI$).$ Capital expenditures are $4\%$ of EGI. The vacancy rate, operating expense ratio, and capital expenditure ratio are expected to remain constant during the investment period of $3$ years. Estimate the market value of the property at the end of the $3-$year holding period, assuming the terminal $($going$-$out$)$ capitalization rate, R$,,$ is $9\mathrm{.}00\%$ $$743,859$ $$769,894$ None of the selections are within $$10$ of the correct answer $$1,328,319$ $$1,374,810$