Pockey Company has assembled the following market data, based on commercial real estate sales in the area in the past six months, which can be used to indirectly estimate the selling price of a building the company purchased.

The building purchased by Pockey Company, which is called €œBuilding Z,€ has 32,000 square feet and a capitalization rate of 9.3%. What is the fair value of BuildingZ?

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Selling Price Square Feet Capitalization Rate 10,000 20,000 30,000 40,000 50,000 7% 8% 9% 10% $700,000 $1.425,000 $2,000,000 $2500,000 $3,000,000 ,750,000 1550,000 1400,000 625,000 550,000 500,000 .250,000 1.100.000 1.000,000 2,250,000 2.000,000 1,800,000 2,625,000 2,300,000 2,100,000