You company has a required rate of return of 7 percent and is looking to purchase a building. You are looking to obtain a 6% cap rate and the year 1 NOI will be $80,000, expected to grow at a rate of 2 percent per year. As part of your analysis, you must calculate the reversion value at the end of year 5, which would be:

a. $1,261,806 b. $1,358,868 c. $1,472,107 d. $1,766,529