Suppose we expect the Net Operating Income to go up by 3, and suppose an investment with equal risk is expected to return 9%. What is the new value of the building?

		$20,500,000
		$23,896,000
		$17,875,000
		$29,450,000

400 7th Street Rental Model Financial Summary: Annual Rental Income: 62 Units $50psf $2,050,000.00 Less Vacancy Factor of -$102,500.00 Effective Rental Income $1,947,500.00 Annual Operating Expenses: Property Tax $255,000.00 Insurance $50,000.00 Water & Sewer $45,000.00 Elevator Maintenance $12.000.00 Electric $25.000.00 Repairs & Maintenance $40,000.00 Reserves $40.000.00 Telephone and Internet $8.500.00 Supplies $12,000.00 Management $40.000.00 Legal & Accounting $10.000.00 Janitorial $18,000.00 Total Operating Expense $555,500.00 Net Operating Income $1,392,000.00