You are considering purchasing an office building for $3,400,000. You expect the potential gross Income (PGI) in the first year to be $450,000; vacancy and collection losses to be 7 percent of PG, and operating expenses and capital expenditures to be 43 percent and 4 percent, respectively, of effective gross income (EGI). a) What is the implied first-year overall capitalization rate? 7.50% none here 8.15% 6.85% 6.52% b) What is the effective gross income multiplier? 7.71 08.12 9.34 none here 8.53