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Business, 22.02.2020 00:54 leslieneilstric

Given the following information, calculate the appropriate going-in cap rate using general constant-growth formula. Overall market discount rate = 2 12%, Constant growth rate projection: 3% per year, Sale price $1, 950,000. Net operate income $390,000. Potential gross income $520,000.

a. 8%
b. 9%
c. 10%
d. 11.5%

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