You are considering the purchase of an office building for $2,000,000. You anticipate $340,000 first-year gross potential income; vacancy and collection loss equal to 10% of gross potential income; miscellaneous income equal to 2% of PGI; operating expenses equal to 40% of effective gross income; and capital expenditures equal to 5% of EGI. You have arranged a mortgage loan of $1,500,000 with an annual interest rate of 6%. The loan will be amortized over 20 years with a monthly payment of $10,459.34. Total upfront financing costs (closing costs) will equal 2% of the loan amount. Fill out the cash-flow analysis below and answer/calculate questions 25 through 33. Amount $ Item Potential Gross Income (PGI): Less Vacancy and Collection Loss (VC): Add Miscellaneous Income: = Effective Gross Income (EGI): Less Operating Expenses (OE): Less Capital Expenditures (CAPX): = Net Operating Income (NOI): Less Debt Service (DS): = Before-Tax Cash Flow (BTCF): 25) What is the CAP Rate