Question
A lower going in cap rate means the investor should expect less cash flows from operations and should expect to make most of their returns
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A lower going in cap rate means the investor should expect less cash flows from operations and should expect to make most of their returns from the future equity reversion as opposed to a higher cap rate which indicates that the bulk of the returns will be made from the yearly cash flows.
True
False
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
15th Edition
978-0357438480, 0357438485
