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An investor wants to purchase an 8-unit apartment building that receives rent of $400/month for each unit. The annual operating expense for the apartment building
An investor wants to purchase an 8-unit apartment building that receives rent of $400/month for each unit. The annual operating expense for the apartment building is $6,500. If the investor expects 9% Capitalization rate (expected return on the investment), what should be the maximum price of the property?
1. $354,444
2. $534,000
3. $435,404
4. $345,000
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