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4) A multi-unit office building owner spent $20,000 last year to replace 20 doors in a 100-unit office building. What annual expense would be projected

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4) A multi-unit office building owner spent $20,000 last year to replace 20 doors in a 100-unit office building. What annual expense would be projected for replacement if all units had three doors? Assume a 10 year life for all replacements. a. $1,000 b. $20,000 c. $30,000 d. $300,000 5) The most commonly used capitalization rate is: a. The income rate b. The composite capitalization rate c. The interest rate d. The overall rate 6) If a particular buyer requires a recapture of the building portion of the price in 20 years, then what is the indicated recapture rate for the building, assuming straight line depreciation? a. 1% b. 5% c. 10% d. 20%

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