An old office building in Central produces first-year net operating income of $10 million. The income is expected to grow at 2% for years 2 and 3 and then decline at 3% thereafter. Assuming a long economic life of the building and using a discount rate of 12% per year, the property value in millions is closest to:

Select one:

a. $72

b. $76

c. $70

d. $74

e. $78