Mrs. Smith uses a hedonic price estimationmodel to perform an initial analysis of prospective properties. Her apartment building model is based on the following regressioncoefficients:

Characteristics	Units	Coefficients ($)
Number of One-bedroom Units	Integer	$40,000
Number of Two-bedroom Units	Integer	80,000
Miles to Retail District	Miles	-13,000
Miles to Freeway Entrance	Miles	-25,000

Mrs. Smith is considering a 50,000 square-foot, 4-story building that has 30 one-bedroom units and 20 two-bedroom units. It is 5 milesfrom the nearest retail district and 12 miles from a major freeway entrance. New construction in this area typically costs about $75 persquare foot and an independent appraisal valued the land at $500,000. The estimated value of this property using the comparative salesapproach is closest to:

a. 2,750,000

B. 2,435,000

C. 3,250,000

D. 4,560,000