Suppose apartment rents, on average, are expected to be $750 per month per unit this year (Year 1), each signed at various times. Over the course of a year vacancy and collection losses per unit are expected to average 5% of the potential gross income (PGI). No miscellaneous or reimbursable expenses are expected. The Year 1 annual operating expenses are expected to be $3,500 per unit. Rents and expenses are expected to increase at 3% per year. What is the expected annual net operating income (NOI) per unit for in year 3? $8,535 $10,736 $5,254 $5,358