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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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