You are looking at investing in an office building. Your analysis indicates an expected Year 1 NOI of $409,000. You have contacted a lender who tells you he will provide an interest-only loan for a 10 year period at 7%, but he requires a DCR (Debt Coverage Ratio) of at least 1.3. Ignoring other factors, what is the maximum debt capacity of this property (ie. maximum loan amount) (rounded)?

a.$4,694,000

b.$4,495,000

c.$3,992,000

d.$2,391,000