provide steps how to solve it. ty!

33. An owner-occupied data center just sold on the open market in Detroit, MI for $2,500,000. Prior to the sale, the owner completed rehabilitating and upgrading the heating and air conditioning systems for a total cost of $375,000. Based on comparable investments, the potential gross income was $500,000 and the vacancy and collection allowance was 5%. The estimated net operating income was projected to be $200,000 for the first year of operations by the new owner. What is the overall capitalization rate one can extract from this sale in the Detroit market? A. 2.000% B. 5.00% C. 6.97% D. 8.00%. E. 9.41%