Use the direct capitalization approach to income valuation to calculate the market value of the apartment building that has been described below: Number of Units: Average rent: Expected annual rent growth: Other income: Expected annual growth in other income: Vacancy and collection losses: Operating expenses: Capital expenditures: Selling expenses: Discount rate: Going-in cap rate: Going-out cap rate: 50 $1,500 per unit per month 4% $20 per unit per month 3% 10% of potential gross income 35% of effective gross income 3% of effective gross income 3% of future selling price 8% 6% 6.25% $7.81 million $8.83 million $8.49 million $9.34 million