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Consider the following financial information for the current year for an apartment building: Purchase Price Number of Units Annual Rent per Unit Vacancy Rate Collection

Consider the following financial information for the current year for an apartment building:
Purchase Price
Number of Units
Annual Rent per Unit
Vacancy Rate
Collection Loss
Variable Expenses per Unit per Year
Fixed Expenses per Unit per Year
24 units occupied last year
$2,500,000
25
$32,500
4%
2%
$9,750
$11,375
Based on your estimate of this year's NOI and assuming no replacement allowance, which of the following represents the gross income multiplier and overall capitalization rate, respectively?
(1)4.76;8.6%
(2)4.11;7.3%
(3)3.27;9.8%
(4)3.99;6.2%
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