You have just completed the appraisal of an office building and have concluded that the market value of the property is $2,500,000. You expect potential gross income (PGI) in the first year of operations to be $450,000; vacancy and collection losses to be 9 percent of PGI; operating expenses to be 38 percent of effective gross income (EGI); and capital expenditures to be 4 percent of EGI.

a. What is the EGI for the first year?

b. What is the NOI for the first year?

c. What is the implied going-in capitalization rate?

d. What is the effective gross income multiplier (EGIM)?