Bill Welch is a real estate analyst constructing the pro forma income statement for a particular property he is considering purchasing. The report is partiallysummarized below.

Net Rental Revenue:	$1,250,000
Less: General Operating Expenses	275,000
Depreciation	500,000
Mortgage Interest	475,000

In addition, Bill has found a similar property that had a NOI of 400,000 and recently sold for $8,000,000.

Based on this information and an applicable income tax rate of 35%, the estimated fair market value of this property, according to the income approach, is closestto:

	a.	$8,800,000
	b.	$17,100,000
	c.	$19,500,000
	d.	$18,800,000