Given the following owner's income and expense estimates for an apartment property formulate a reconstructed operating statement

Given the following owner's income and expense estimates for an apartment property formulate a reconstructed operating statement. The building consists of 10 units that could rent for Shs. 550 per month each.

Owner's income statement

Rental income (last year) Sh. 60,600

Less expenses Power

Power 2,200

Heat 1,700

Janitor 4,600

Water 3,700

Maintenance 4,800

Reserve for replacements 2,800

Management 3,000

Depreciation 5,000

Mortgage Payments 6,300 34,100

Net Income 26,500

Estimating vacancy and collection losses at 5% of gross income, reconstruct.

Required Calculate the property's indicated market value if the required rate of return is 11%.

(6 marks)