You are preparing a five-year proforma for ACME Apartment Realty Fund I. The fund has the following data, $100M in total assets with 65% debt at 6% interest only, risk free rate of 3.5%, ownership split of 75%/25%, preferred return of 9%, inflation rate of 3% and portfolio valued at a 6.0% cap rate. What is the preferred return projected to be paid in year two of the proforma?

a. $3,150,000

b. $1,050,000

c. $2,280,000

d. $2,100,000