Suppose that you are considering an investment in an apartment building. The specifics are: - The building is five years old, has a 85 percent occupancy rate, and has an expected useful life of 30 years. Assume that this occupancy rate is expected to continue for the life of the building. - There are 130 2-bedroom units, 150 1-bedroom units, and 90 studios. - The 2-bedroom units rent for $5500 per month, the 1-bedroom units for $4000 per month, and the studios for $900 per month. - Current rent control laws will prevent the rents from ever being raised. - The estimated annual maintenance cost for the building is $1800000 per year (this is independent of the number of apartments rented). - There is an additional estimated maintenance cost at $145 per unit per month, when each unit is rented. - There will be no salvage value to the building in 30 years, but it is estimated that it will cost 5 million dollars at that time to demolish the building as will be required in the purchase contract. (You are not purchasing the land. You will have a 30-year lease of the land, which is paid for in the purchase of the building.) - The asking price of the building is $80 million. - The tax-rate is 38%, and assume the building will be fully depreciated over its useful life. - The WACC is 8%. Develop the pro-forma income statement, compute the Operating Cash-Flows and NPV. Determine whether you should make this investment if you require a 8% (after-tax) return on investments like this.

Group of answer choices

YES; NPV between 15110000 and 15610000

YES; NPV between 13610000 and 14110000

YES; NPV greater than 15610000

YES; NPV between 14610000 and 15110000

YES; NPV between 14110000 and 14610000