The last investment option for BIC is a run-down building on 1 acre of land called Crystal Estates. They expect to rent the building as a storage facility, which will yield an NOI of $105,000 next year. Because of the wear on the building, BIC expects cash flows to decline at the rate of 1% per year indefinitely. BIC estimates it will earn a total return of 6.5%.

A) What is the NPV of this property in its current condition if the purchase price is $1.2M? (5 points)