Valuing real estate Q

An apartment complex would earn $2million annually if fully occupied. The complex has a 10% vacancy rate and annual operating expenses of $200,000 per year. The interest cost of financing the purchase of the building would be $150,000 a year. The investors marginal tax rate is 40%. The investor wants to earn 10% on this investment. Using the income approach, the value the investor would place on the office building would be closest to a 8.7M b 12.5M c 14.5M d 16M

D) 2m*.9-200k = 1.6m cap rate = 10 => 16m

Correct. What i dont understand is why tax is not included? looking at the SS notes, you dont omit tax in your calculation of NOI?

Property taxes, not income taxes mate.