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7. If a property will produce net cash flow that grows at a rate of 1.5% per year in perpetuity, and the opportunity cost of

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7. If a property will produce net cash flow that grows at a rate of 1.5% per year in perpetuity, and the opportunity cost of capital is 12%, then what is the "cap rate" (net cash flow/ property value) for the property? a) 8%. b) 10%. c) 10.5%. Xx 1/r-g 1/12-1.5 d) 12%

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