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You are considering an acquisition of a property that, upon stabilization, will be worth an estimated $4,500,000. The costs to stabilize the property total $975,000,

You are considering an acquisition of a property that, upon stabilization, will be worth an estimated $4,500,000. The costs to stabilize the property total $975,000, which would all be incurred immediately. However, stabilization would occur over a two year period, due to market conditions. What would you pay for this property today to achieve a 12% annual yield?

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