Use the following pro forma to answer the next two questions.

Potential gross incomeR1,700,000

Vacancy & collections 255,000

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Effective gross income 1,445,000

Operating expenses 794750

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Net operating income 650,250

This property has a market value of R5.65 million.

______ 9. What vacancy allowance is used in this statement?

1. 38.25%
2. 85.00%
3. 10.00%
4. 55.00%
5. None of the above, the correct answer is ------------

______ 10.What is this property's cap rate?

1. 8.69%
2. 3.91%
3. 10.00%
4. 11.51%
5. None of the above; the correct answer is __________.