You are the Landlord of a building with two tenants $($A and B$).$ Use the following information to calculate the $($projected$)$ Year $3$ building operating expenses, assuming $100\%$ gross leases $``$in arreas$$ for all tenants: Each tenant occupies $50\%$ of net rentable space. Tenant A has a fixed lease for the next ten years, and Tenant B has a lease which expires at the end of year $2($beginning of year $3).$ First year Operating Expenses are $$1000,$ and are projected to increase $5\%$ per year. Building expenses are $60\%$ fixed, $40\%$ variable. Assume that Tenant B has a $70\%$ probability of exercising an extension option for year $3.$ If they do not renew, assume the space will be vacant for $3$ months, and then occupied by a similar tenant $($in terms of operating expenses$).$

a$.$ $$1,157\mathrm{.}60$

b$.$ $$810\mathrm{.}30$

c$.$ $$329\mathrm{.}90$

d$.$ $$1,140\mathrm{.}20$