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The subject property produces a net operating income of $ 1 0 0 , 0 0 0 that increases 3 . 0 % annually. For

The subject property produces a net operating income of $100,000 that increases 3.0%
annually. For this property type, the overall discount rate is 8.0% and the overall capitalization |
rate is 3.5%. Rounded to the nearest $1,000, what would the subject sell for if it was based on
the overall capitalization rate multiplied by the level-equivalent income for the next 3 years?
A. $3,429,000
B. $3,031,000
C. $2,939,000
D. $3,427,000
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