Suppose you are appraising an apartment complex with 250 units. You have estimated the following monthly income and expenditures for the first year of ownership: each unit is renting for $1,000 per month. Vacancy and collection losses are equal to 20% of PGI, monthly operating expenses are estimated to be $50,000 and monthly capital expenditures are $80,000. The mortgage payments are $29,540/month. Property taxes are $10,000 per month and insurance is $8,000 per month. If you are using above-the-line treatment of capital expenditures, and comparable properties have a cap rate of 7%, what is the indicated value of the apartment complex?

A.$1,000,000

B.$3,571,429

C.$3,850,286

D.$12,000,000