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An entrepreneur is considering a new project consisting of an apartment building with 50 units. Each unit can be rented for $1,000/month. It is

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An entrepreneur is considering a new project consisting of an apartment building with 50 units. Each unit can be rented for $1,000/month. It is expected to have an average vacancy rate of 10%. Net operating expenses are budgeted as 30% of the project's gross annual income. What would be the economic value of this project, using a cap rate of 8%?

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