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A property produces a first-year net operating income of $26,000. Because of the long economic life of the building, the income is considered as a
A property produces a first-year net operating income of $26,000. Because of the long economic life of the building, the income is considered as a perpetuity that will grow by 2.5% per year. Using a discount rate of 11.5%, the property value is estimated at?
(A) $288,888
(B) $260,000
(C) $226,086
(D) $342,857
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