Sarah is going to value a property which consists of 20 unit of apartments. Each unit has a monthly rent of SAR4, 500. With the current economic situation, vacancy and loss in collection is estimated a 105 per year. The first-year operating expenses are expected to be at 25 percent of effective gos thocroe (EG1). Capital expenditures allocation is 12 percent of EGI. If the cap rate (R_O) is 8%, determine the indicated value of the subject property using the direct capitalization method. (Please show all your workings).