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A property is sold for $200,000. Typical financing terms are an 80% loan with a 10% interest rate over 12 years. If the before-tax cash

A property is sold for $200,000. Typical financing terms are an 80% loan with a 10% interest rate over 12 years. If the before-tax cash flow is $2,000, what is the overall capitalization rate?

Answer: R = 12.47%

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