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An investment group acquires a retail property in Dallas, Texas for $ 2 , 5 0 0 , 0 0 0 . They project that

An investment group acquires a retail property in Dallas, Texas for $2,500,000. They project that the net operating income will be $176,000 initially and will appreciate at a conservative annual rate of 2.65% per year. The investment group expects an initial cap rate of 7.0%. They believe that a cap rate of 8.0% is realistic after 6 years.
If the investor plans to sell the property at the end of 6 years, what value should the investment company expect to sell the property at that time?

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