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Suppose the risk free rate of return is 1%, inflation is 2%, cash flow risk premium is 3% and reinvestment risk premium is 2%. Using

Suppose the risk free rate of return is 1%, inflation is 2%, cash flow risk premium is 3% and reinvestment risk premium is 2%. Using the Theoretical Approach to estimating your cap rate, it would equal:

		6%
		7%
		8%
		9%

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