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Mike Has Decided to Purchase a Real Estate Property That

Question 45

Multiple Choice

Mike has decided to purchase a real estate property that is expected to generate a net operating income (NOI) of $63,000 per year.With a 9 percent cap rate,the property would have an estimated value of _____.


A) $630,000
B) $187,000
C) $700,000
D) $965,000
E) $235,000

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