A Real Estate Investment Company has a weighted average cost of capital of 10% and $2 mil of capital to invest. Which of the following properties is the most appropriate to buy?

Select one:

a.

Property C: 10% Cap Rate, NOI $100,000

b.

Property D: 12% Cap Rate, NOI $300,000

c.

None of the properties

d.

Property A: 8% Cap Rate, NOI $400,000

e.

Property B: 11% Cap Rate, NOI $180,000