You are considering an investment in an apartment complex that has a purchase price of $10,000,000. The potential gross income (PGI) in year 1 is $1,400,000 and is expected to grow 5 percent annually. It is expected that the vacancy rate will be 12 percent. Operating expenses are expected to be 34 percent of effective gross income (EG). Assume the investment has a 4 year holding period and there will be no capital expenditures over the holding period. Also, the project will be financed 100 percent with equity financing. At the end of the holding period, the project will be sold at a price to be determined by using 5th year NOI and a capitalization rate of 9 percent. a) What is the NOI for each year? b) Calculate the net sales proceeds from the sale of the property at the end of the 4th year. (Hint: you must calculate 5th year NOI to compute the selling price.) c) Calculate the net present value (NPV). The required return on unlevered equity is 10.5 percent.