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Consider the following information about apartment complex: Gross rental receipts $970,000 Other income $130,000 Average vacancy rate 7% Operating expenses $525,000 Capitalization, or discount, rate

Consider the following information about apartment complex:

Gross rental receipts $970,000
Other income $130,000
Average vacancy rate 7%
Operating expenses $525,000
Capitalization, or discount, rate 5%

Calculate the value of the complex using the net operating income approach.

1. $10,100,000

2. $8,690,000

3. $9,960,000

4. $9,700,000

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