The cash flows below contain the cash flows from a completed real estate investment analysis. Based on the information in the cash flows what is the net present value of the before-tax levered cash flows if your required rate of return is 8%?

Purchase Price	$4,569,231
Loan Amount	$3,198,462
	Year 1	2	3	4	5
Leasable Space	30,000	30,000	30,000	30,000	30,000
Average Rent	$20	$21.00	$22.05	$23.15	$24.31
Potential Gross Income	$600,000	$630,000	$661,500	$694,575	$729,304
Vacancy and Collection Losses	10%	10%	10%	10%	10%
	($60,000)	($63,000)	($66,150)	($69,458)	($72,930)
Effective Gross Income	$540,000	$567,000	$595,350	$625,118	$656,373
Operating Expenses	40%	40%	40%	40%	40%
	($216,000)	($226,800)	($238,140)	($250,047)	($262,549)
Capital Expenditures	5%	5%	5%	5%	5%
	($27,000)	($28,350)	($29,768)	($31,256)	($32,819)
Net Operating Income	$297,000	$311,850	$327,443	$343,815	$361,005
Annual Debt Service	($291,581)	($291,581)	($291,581)	($291,581)	($291,581)
Before-Tax Cash Flow	$5,419	$20,269	$35,861	$52,233	$69,424
Future Selling Price	$5,615,639
Selling Expenses	3% ($168,469)
Net Sale Proceeds	$5,447,170
Amount Outstanding	($2,620,301)
Before-Tax Equity Reversion	$2,826,869

Question options:

	a. $703,400
	b. $689,700
	c. $744,800
	d. $772,400