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If the Cap Rate Is 5%, and the Interest Rate

Question 5

Multiple Choice

If the cap rate is 5%, and the interest rate on a savings account is 5%, which of the following most accurate:


A) You are indifferent between buying the property or not
B) You will buy the property
C) You will not purchase the property
D) You will purchase the property only if the NOI falls next year

Correct Answer:

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