Question
Arya is a real estate rock star. Her revenues increase by 20% in Year 2 and 5% each year thereafter. Her expenses increase at
Arya is a real estate rock star. Her revenues increase by 20% in Year 2 and 5% each year thereafter. Her expenses increase at 2% per year. If she sells the building at 6% cap rate at the end of Year 5, what price will she get? If she she sells the building for $3,135,000, what cap rate is that?
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