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Estimate the present market value of a 10-unit apartment house given the following information pertaining to the property.

Each apartment has 1000 square feet of living area, 3 bedrooms, and kitchen appliances. Tenants pay their own utilities. The value of the land is $250,000. The estimate replacement value is $100 per square foot for this type of construction. Total operating expenses insurance and property taxes for the year, $25,000. The rental income, $6000 month/allow 5% for vacancy and non-payment. Management fees are 6% of total rents collected. The building is 20 years old and has an estimate future useful life of 20 more years. A first mortgage is available at 6% for 75% of the purchase price. Equity will be used as the other 25% of the purchase price and the owner requires a return of 12% on the equity investment.

Compute the following:

B) Capitalization rate adjusted for recapture

C) Estimated value of this property using the income approach

D) Estimated value using the replacement cost approach

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