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Given the following information, what is the appropriate cap rate? Sale price: $1,950,000 Net operating income: $390,000 Potential gross income: $520,000 A. 20% B. 13.6%

Given the following information, what is the appropriate cap rate?

Sale price: $1,950,000

Net operating income: $390,000

Potential gross income: $520,000

  • A.

    20%

  • B.

    13.6%

  • C.

    10%

  • D.

    9.6%

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