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You are considering purchasing an office building for $1,500,000. You expect the potential gross income (PGI) in the first year to be $450,000; vacancy and
You are considering purchasing an office building for $1,500,000. You expect the potential gross income (PGI) in the first year to be $450,000; vacancy and collection losses to be 10 percent of PGI; and operating expenses and capital expenditures to be 38 percent and 4 percent, respectively, of effective gross income (EGI). What is the effective gross income multiplier? PLEASE SHOW WORK
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