Use the following information to answer the next thwo questions:

Carol would like to purchase a shopping center property. She has determined that the current market vacancy rate is 6 percent, and that operating expenses will run at about 10 percent of effective gross income. The prevailing market cap rate is 9 percent.

The first shopping center she has analyzed has 35,000 square feet which rents at $15.50 per square foot. The second shopping center she is considering 40,000 square feet and rents for $14.00 per square foot.

______

3. Effective Gross Income for the FIRST center is?

A. $ 509 950

B. $542500

C. $ 458 955

D. $ 32 550

E. None of the above; the correct answer is __________.

______ 4. Based on the current market cap rate, the market value of the SECOND center is?

1. $473760
2. $ 6.222 million
3. $ 4.264 million
4. $ 5.264 million
5. None of the above; the correct answer is __________.