You own an $8-$unit apartment building with $(4)1$ bedroom$/1$ bath units and $(4)2$ bedroom$/2$ bath units.

Current Rents are $$850/$month for the $1$s and $$13,50/$month for the $2$s$.$ You have construction bids to

remodel all of the kitchens for $$22,000/$unit$.$ You will make this investment in upgrading the kitchens if

you can achieve a $10\%$ Cash$-$on$-$Cash return on the remodel investment.

$1.$ What is current PRI?

$2.$ What will PRI need to be to achieve the $10\%$ return on remodel?

$3.$ How would you allocate this increase between the $1/1$ units and the $2/2$ units?