Given the following information, calculate the 'going in' cap rate for this property assuming no miscellaneous income:

Purchase price: $2,300,000

First-year effective gross income (EGI): $290,000

Vacancy and collection losses: 12.0%

Annual operating expenses: $60,000

Annual capital expenditures: $12,000

Estimated 'going out' cap rate: 10.5%

	A.	9.5%
	B.	9.8%
	C.	12.6%
	D.	10.5%
	E.	8.0%