Suppose that you are considering an investment in an apartment building. Use the information provided below to answer the questions that follow:

Type of Property: Apartment building

Number of Units: 30

Average Rent (Year 1): $1,500 per unit per month

Annual Growth in Average Rent: 5%

Vacancy and Collection Losses: 5% of Potential Gross Income

Other Income (Year 1): $50 per unit per month

Annual Growth in Other Income: 3%

Operating Expenses: 35% of Effective Gross Income

Capital Expenditures: 4% of Effective Gross Income

Selling Expenses: 5% of Future Selling Price

Going-Out Cap Rate: 6.5%

Expected Purchase Price: $5.25 million

a. What is the NOI in year 1?

b. What is the NOI in year 2?

c. If NOI in year 6 is $412,116. What is the net sale proceeds at the end of year 5?