Given the following information, calculate the estimated first-year net operating income (NOI) for this office building using abovethe-line treatment of capital expenditures and assuming no miscellaneous income: Lot size: 1.1 acres Rentable square footage (RSF): 12,000SF Market rent: \$22/SF/year Vacancy and collection loss: 9% of potential gross income Operating expenses: 37% of effective gross income Capital expenditures: 10% of effective gross income A. $127,327 B. $463,827 C. $151,351 D. $149,688 An investment company acquires a small office building in Houston, Texas for $2,500,000. They project the net operating income will be $136,000 and will appreciate at a conservative annual rate of 2.4% per year. According to the investors if the initial cap rate is 6.0% they believe that a cap rate at the sale of the property after 5 years of 7.25% is realistic. If the investment company plans to sell the property at the end of 5 years, what value should the investment company expect to sell the property at that time? A. $3,015,256 B. $2,162,722 C. $2,687,456 D. $2,813,548