An investor considers purchasing a 300 room full-service hotel that generates a net operating income (NOI) of

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An investor considers purchasing a 300 room full-service hotel that generates a net operating income (NOI) of $450,000 per year. The investor is willing to purchase the hotel at a cap rate of 8%. At what price per room should the investor offer to buy the hotel?

a. $18,750

b. $12,000

c. $16,750

d. $15,000

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