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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 $1,855/mon th.

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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 $1,855/mon th. It is expected to have an average vacancy rate of 7%. Net operating expenses are budgeted as 21.7% of the project's gross annual income. What would be the economic value of this project, using a cap rate of 7.9%

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