Multiple Choice
If a property will produce net cash flow that grows at a rate of 1.5% per year in perpetuity, and the opportunity cost of capital is 12%, then what is the "cap rate" net cash flow / property value) for the property?
A) 8%.
B) 10%.
C) 10.5%.
D) 12%.
Correct Answer:
Verified
Correct Answer:
Verified
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