Solved

Given the Following Information, Calculate the Appropriate Going-In Cap Rate

Question 17

Multiple Choice

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


A) 8%
B) 9%
C) 10%
D) 11.5%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions