Johnston Corporation Wishes to Purchase an Apartment Complex That Provides

Johnston Corporation wishes to purchase an apartment complex that provides annual cash flows from rental property of $5,000,000. Rental increase is approximated at 1.5% per year into the
Foreseeable future. If Johnston's return requirement is 12.5%, determine the value of the apartment
Complex.

A) $45.45 million
B) $47.47 million
C) $49.49 million
D) $51.51 million
E) $53.53 million