You are contemplating the purchase of an apartment building. Net operating income for the first year is expected to be $200,000 and increasing by 50% of the projected inflation rates in the forecast below. Comparable properties have cap rates ranging from 9.2% to 10.2%. The building is priced at a cap rate of 9.8%, your required rate of return is 10%, and you are using a 10-year analysis and expect that the building will sell for $2,400,000 at the end of year 10. Inflation Forecast: Year 2-4 @ 3%; Year 5-7 @ 4%; Year 8-11 @ 3% What dollar price does the cap rate price imply for the building?