A residential apartment block in New York has 20 apartments of 1000 square foot area each. The monthly rental per apartment is $5000. The vacancy rate is 10% , and average collection losses are 2%. Operating expenses are $10000 per month (fixed expenses not depending on occupancy). The risk free rate and cap rate are 5% and 10% respectively. The value of the property using the NOI approach is closest to:()
A. $9.36 mil.
B. $9.38 mil.
C. $6.24 mil.