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    Exam 8: Valuation Using the Income Approach
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    Given the Following Information,calculate the Appropriate Going-In Cap Rate Using
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Given the Following Information,calculate the Appropriate Going-In Cap Rate Using

Question 17

Question 17

Multiple Choice

Given the following information,calculate the appropriate going-in cap rate using mortgage-equity rate analysis.Mortgage financing = 75%,Typical debt financing cap rate: 10%,Sale price: $1,950,000,Net operating income: $390,000.


A) 9.6%
B) 10%
C) 12.5%
D) 13.6%

Correct Answer:

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