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A real estate company is considering a new project consisting of an apartment building with 100 units. Each unit can be rented for $2,385/ month.

image text in transcribed A real estate company is considering a new project consisting of an apartment building with 100 units. Each unit can be rented for $2,385/ month. It is expected to have an average vacancy rate of 9%. Net operating expenses are budgeted as 28.8% of the project's gross annual income. What would be the economic value of this project, using a cap rate of 8.6%

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