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The cap rate is an important metric that investors use to analyze the state of commercial real estate markets. When interpreting cap rate movements, a

The cap rate is an important metric that investors use to analyze the state of commercial real estate markets. When interpreting cap rate movements, a decrease in cap rates over time would indicate that

A. the discount rate used in TVM (time value of money) calculations has increased.

B. the discount rate used in TVM (time value of money) calculations has decreased.

C. property values have decreased.

D. property values have increased.

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