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Consider you are underwriting a property and have been given the following Assumptions: Market Rent Growth Residual Cap Rate Scenario A 3.25% 3.50% Scenario B

Consider you are underwriting a property and have been given the following Assumptions:

Market Rent Growth Residual Cap Rate
Scenario A 3.25% 3.50%
Scenario B 3.00% 3.75%
Scenario C 2.00% 4.00%

In order, which Scenario is the Base Case, Optimistic Case, and Pessimistic Case:

A. Scenario B, Scenario A, Scenario C

B. Scenario B, Scenario C, Scenario A

C. Scenario A, Scenario B, Scenario C

D. Scenario C, Scenario A, Scenario B

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