One of your Client wants to buy an Apartment building, which is likely to produce Net Operating Income (NOI) of $ 55,000 next year. He wants you to calculate the Value of the Building using a Band of Width Investment Method to determine Cap Rate. A bank has offered him a Fixed Mortgage Rate of 5.5% with monthly ppayments over 30 years, provided the client makes 20% down payment. The client wants to have a Return on Equity of 18%. According to your calculations, the Value of the Apartment Building is:

a. $ 348,925

b. $ 607,683

c. $ 305,556

d. $ 224,490

e. $ 846,154

f. $ 625,000