Which of the following statements is true regarding a property with value of $16,000,000, an annual NOI of $1,250,000, monthly debt service of $80,000, annual leasing and tenant improvements of $50,000, annual capital improvements of $25,000 and an annual preferred return of $77,000 to the equity investor?

(A) The cash flow after debt is $1,170,000

(B) The cash flow before any cash distributions to the equity investor is $138,000

(C) The cash flow to equity is $215,000 (D) The cap rate is 7.34%

(D) The cap rate is 7.34%