You are considering buying a 90-unit apartment building in Miami. You have the money and are looking for an after-tax return on your investment of 8% per year. The current owner who wants to sell the apartment building provides you with the following information for the last three years. Project revenues, expenses and profits for 2020 assuming the trend in the last 3 years will continue into 2020 for each item of expense. Assume that all revenues and expenses after 2020 will remain the same forever (i.e., every year after 2020 will look exactly like 2020). The income tax rate is 21%. What is the price you will be willing to pay for the apartment complex? Actual Expected Actual Actual 2017 2020 2019 2018 $1,382,400 $1,652,400 $30,000 $12,000 $1,514,700 $28,800 Apartment Rental Revenues $27,600 $10,000 $11,000 Apartment Manager's Salary Janitor & Other help Salary $63,000 $60,000 $66,000 Repairs and Maintenance $20,000 $120,000 $18,000 $108,000 Insurance $22,000 $132,000 $16,000 $34,000 $12,000 Utilities $14,000 $33,000 $32,000 Advertising Commissions $7,000 $6,500 $13,800 $6,000 $13,800 Office expenses $13,800 Miscellaneous Expenses $1,600 80% $1,650 85% $1,700 90% $1,750 95% $2,300 $2,400 Average Rental per month Average Occupancy Apartment Manager's Salary 1 month) $2,500